Resort News, January 2024 by Multimedia AU/NZ

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Issue 329 | January 2024 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

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INSIDE

The legal stuff...

January 2024 - Issue 329

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

Advertising Conditions

06 ARAMA Report

10 BCCM Report

Front Desk 05

12 Person of Interest

Tourism

Editor’s Note: 2024 takes off with gratitude and green initiatives

Industry

Tourism Report

Niche Travel

Events

ARAMA Report

State Report

Mike Phipps Finance Xmas Party

BCCM Report

MRITP

Person of Interest: Chris de Closey

2023 PRET Awards

Management

Developments

Legal Ease

By All Accounts

Motel Market

Thinking MR

Good Governance

Building Relationships

Creative Solutions for Managing the Holiday Rush

Preferred Supplier Directory

Gyms: An essential facility

Development News

Property 38

AccomProperties Sales Report

Proﬁle 42

Sanctuary Beach Resort: Golf pro having a ball at Sanctuary Beach Resort

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

26 Tourism Report

36 Developments

EDITOR

SUBSCRIPTIONS

CONTRIBUTING THIS ISSUE...

Mandy Clarke editor@accomnews.com.au

Gavin Bill

Andrew Morgan, Ben Ashworth, Ben Bass, Commissioner for Body Corporate and Community Management, Jonathan Hanaghan, Kelley Rigby, Lynda Kypriadakis, Mike Phipps, Sam Steel, Stephen West, Trevor Rawnsley and Will Kenny.

ADVERTISING

Stewart Shimmin advertising@accomnews.com.au

29 Events

January 2024

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

2024 takes off with gratitude and green initiatives Welcome to the first edition of Resort News of 2024! Let’s dive into the year with a sense of reﬂection and gratitude. I’m absolutely thrilled to be part of such an innovative industry, and I’m always excited to share the latest updates and insights that might shape the accommodation world in the coming year. But what do I look forward to most? Connecting with all of you, attending industry events, networking, and making lots of meaningful connections and even new friends. It’s hearing from you, whether through an email, a message, or a chat that always puts a big smile on my face, inspires a cracking yarn and simply brightens my day.

Mandy Clarke, Editor editor@accomnews.com.au

Looking back, 2023 was an extraordinary year for our industry. Despite challenges to the very roots of our MLR business model and ongoing struggles with staffing shortages, once again we showed how resilient this valuable sector is. Thanks to our industry association, ARAMA, and the dedicated professionals who fight tooth and nail to uphold the MLR laws, regulations, and values that make this sector so dear to us.

In 2024, apart from the usual MLR issues, strata drama, economic and political shenanigans, I expect sustainability will continue to take centre stage. Did you know starting from July 1, 2024, all Federal Government employees will need to consider the environment when booking their travel? What’s more, the main yardstick for evaQluating hotels, apartment buildings and so on, will be their commitment to ESG (Environmental, Social, and Governance) practices, as indicated by their NABERS rating (National Australian Built Environment Rating System). This system compares buildings and businesses across different categories. These government moves align perfectly with The Net Zero in Government Operations Strategy. Stay tuned, we’ll dive deeper into the initiatives in a future edition of the mag.

topic. Did you know that one in five Aussies has some form of disability? In my books, any accommodation property not catering to this market isn’t just failing to break down barriers but also missing out on a golden opportunity to boost revenue.

This year, I also expect inclusion and accessibility to be a hot

Cheers and warmest regards, Mandy.

In this edition, enjoy some highlights from the ‘air travel’ themed PRET Australia Awards Night 2023. Get to know Chris de Closey, the driving force behind Switch Hotel Solutions, catch up with former golf-pro David Ekberg from Sanctuary Beach Resort and don’t miss our Tips for Selling 2024. Finally, I want to give a massive shoutout and thanks to all the contributors who continue to not only enrich our mag but also support our industry.

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FRONT DESK

January 2024

ARAMA REPORT

New strata laws have moved with the times piece of legislation that is copied around the world and there was no need to trash the whole thing. It just needed to be enhanced and modernised and that has happened. Changes have also been made to the Land Sales Act 1984 (Qld) impacting the operation of sunset clauses in off-theplan land sale contracts.

On November 14, the Queensland Government passed the Body Corporate and Community Management and Other Legislation Amendment Bill 2023. Anything that starts with the letter “P” has been closely scrutinised and reviewed – pets, parking, passive smoking, and pulling down buildings. The feedback which ARAMA received from members is reflected in a lot of the changes to the Act, and we welcome most of them. ARAMA has been involved up to our elbows in the reforms and while we’ve been consistently participating in bringing about better governance in strata legislation, we were specifically immersed in the work of the Community Title Legislation Working Group (CTLWG). That working group was formed by the government and started looking at the legislation in April 2021. The new legislation is the culmination of that work, to which ARAMA has been a core contributor. The new laws are a modernisation of the Act but the reforms don’t throw the baby out with the bath water, and these are the points we’ve been stressing all along. The Body Corporate Community Management Act is a good

January 2024

Some of the important changes relate to Termination of Community Titles Schemes. Where there is less than unanimous support for the termination of a scheme, the changes introduce a new process to facilitate the termination of a scheme for economic reasons provided that some specific requirements are met. The new process includes: •

preparing a pretermination report;

•

the body corporate at a general meeting deciding whether there are economic reasons for termination passed by majority resolution; and

•

the body corporate also passing a termination plan resolution, which requires the body corporate to prepare a termination plan that contains important information for lot owners.

The termination plan must provide for minimum compensation for lot owners as well as compensation for parties with particular contractual interests in the scheme. After giving lot owners a copy of the termination plan and following a prescribed timeframe, the body corporate may then hold a general meeting to consider a motion for a termination resolution which will only be passed if 75 percent or more of all lot owners vote for the motion.

By Trevor Rawnsley, CEO, ARAMA

Most parts of the BCCM Bill will commence on a date to be fixed by parliament, however by the time you read this many of the changes may already be in place.

If a lot owner disagrees with the motion, there are consumer protection mechanisms to ensure they can dispute the decision which may involve making an application for an order of a specialist adjudicator or seeking orders from the district court. Leading management rights lawyer Frank Higginson, from Hynes Legal, says there will still be a long, drawn-out process before a vote to reach 75 percent is taken and the termination provision only applies to buildings that aren’t economically viable. “The building would have to be in a substantial state of disrepair, structural disrepair at that, not just cosmetic stuff,” Frank said. “It means that it is not financially viable over the next five years to keep pouring money into repairs. “Unless you hit that trigger you don’t go anywhere as far as scheme termination.

shows what will happen to the site, how the proceeds will be dealt with, and what’s going to happen to contracts around the building including management rights agreements. They have to get market value. “Everyone needs to vote all of those through – and there has to be a majority resolution of the building, at least 51 per 100 lots. And all that has to be done before you get to the decision to terminate. “If all the reports stack up and no one files a proceeding to say the reports are wrong or that it’s unreasonable then you get to the 75 percent vote. There are a lot of steps before that. “The new laws are a way to move people on if the property is falling apart because until now scheme termination had to be unanimous and you had to cut a deal with each individual owner.

“From a statutory perspective there’s five months’ worth of notices.

“But there still remains a bucketload of protections for people and they have plenty of time to test and argue and consider it.”

“You need pre-termination reports setting out all the issues, you need a plan that

Bodies corporate will now be permitted to make by-laws that specifically prohibit or

INDUSTRY

restrict the smoking or inhaling of smoking products on the common property of the scheme and on an outdoor area of a lot (but not the inside area of a lot). An outdoor area of a lot includes a balcony, courtyard, patio, and veranda.

The government has always been concerned about how much they regulate something that, like it or not, is not an illegal activity and as Frank Higginson said, the difficulty in strata is that the smoke permeates. The government has now made it easier for people to stop neighbours from smoking if it’s deemed to be a nuisance behaviour. They’ve given bodies corporate the ability to ban smoking on common property and on the outdoor area of lots such as balconies. John Mahoney, another leading management rights lawyer, agrees that the new smoking laws are a good move. If people want to smoke, John says, then by all means they can smoke within the confines of their own apartment. But they now have to avoid all areas where it is going to cause a nuisance to other people. John also welcomes the laws to allow bodies corporates to tow cars away instead of just threatening to do so. One of the biggest issues that bodies corporate have, is people constantly parking illegally in visitor’s car parks. Previously it had been extremely difficult to go through the bylaw enforcement process to do something about it. If someone breached the strata bylaws you had to go through the strata commissioner’s office, go through a bylaw enforcement process and then get an order. The process could take 12 months. That’s impractical when someone is constantly parking in a place they shouldn’t, and a lot of intruders knew that it was a convoluted procedure to make them stop. The government now says that a body corporate doesn’t need to go through the bylaw enforcement process before they tow a car provided the body corporate is acting reasonably.

In 1997 when the BCCM was drawn up smoking was far more socially acceptable. Not so much anymore.

So, as Frank Higginson puts it, if you go visit a mate and you come back and your car’s gone and it’s the first you’ve heard about the parking rules, that’s not going to be “acting reasonably”. But if you’re going to visit your mate all the time and you’re more or less living there, and you keep abusing the visitor car parking privileges, and you’ve been told you can’t do that … it might then be considered reasonable to have that car towed.

More and more people than ever in Australia now have neighbours, above, below and beside them.

There have also been big changes when it comes to the keeping of pets, with the new laws stipulating that body corporate bylaws cannot prohibit the keeping of animals in a scheme, or restrict the number, or type or size of animals that may be kept, providing they meet the regulations of local councils.

Not too many decades ago people smoked on trains,

When many strata buildings were erected, they may have had parking provision for just one car per household which was the norm 30 or 40 years ago. Now many households with teenage children have three or four cars, often big SUVs, and they all have to park somewhere. This causes problems in strata.

planes, and buses, and at the desk next to you in your office. Now many people find smoking offensive, especially if it is blowing in from a neighbour’s balcony into your living room. So, times change and social attitudes change with them. It’s a good thing that the new BCCM laws have moved with the times and pleasing to note that the lawmakers continue to listen to ARAMA and involve our members in helping to create even better laws.

Effectively the government is saying that pets are part of people’s lives and there are now very limited grounds for a body corporate to refuse a pet. It’s almost impossible, which is consistent with the rights of tenants in houses to have pets. The government realises that pets are a big factor in good mental health and an important part in the lives of many families. After living and working in strata for many years I have come to the conclusion that most pets are better behaved than some humans. Legislation gets reviewed every seven to 10 years and it’s not unusual for laws to be modified, but the changes to the BCCM Act are significant and they bring the laws up to date with the modern age.

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

For membership enquiries:

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

As more people move into strata, many of the community living issues such as smoking, parking and pets become amplified.

INDUSTRY

1300 ARAMA Q (1300 27 26 27)

January 2024

STATE REPORT

Caretaking Equipment:

It came with the job? goes on. In some schemes, some or all of the equipment being used by the seller might belong to the Owners Corporation. For some building managers, the replacement and repair of equipment could be a significant expense for the business and should be factored in when preparing the budget for the business.

By Ben Ashworth, Senior Associate, Small Myers Hughes Lawyers

When you buy a management rights business, one of the assets you should acquire at the time is all the equipment used by the seller to perform the duties under the caretaking and letting agreements.

Although an Owners Corporation may not be obligated to provide equipment for the day-to-day duties being performed by the building

If the seller was a hands-on building manager, depending on the features of the strata scheme you are buying into, you could expect to receive a mower, gardening tools, power tools, ladders, vacuums, mops and buckets, the list

Most caretaking agreements will state clearly whether the building manager needs to provide their own equipment, or if the Owners Corporation will provide equipment for the building manager. It is common for building managers to have to supply their own caretaking equipment (except for pool maintenance equipment) while the Owners Corporation provides any materials or consumables needed. When equipment needs to be repaired or replaced, the cost of doing this typically falls on the party that is obligated to provide that equipment (for example, if the building manager needs to provide their own mower, the building manager must replace the mower at their expense).

January 2024

manager, it is often the case that the Owners Corporation will provide the equipment needed specifically for a task unique to the strata scheme, or expensive equipment that is only needed on an infrequent basis. Who has to provide equipment in these circumstances can be a grey area in many caretaking agreements and what is, or isn’t provided might be decided by the Owners Corporation committee on a case-by-case basis. Any equipment provided by the Owners Corporation belongs to the Owners Corporation and does not become an asset of the building manager’s business. For building managers that operate multiple locations, equipment from one Owners Corporation should not be used when performing caretaking duties for another Owners Corporation. It is important for building managers to keep a clear record of the equipment that they use that belongs to the Owners Corporation. When selling a business, the building manager needs to let the buyer know which equipment is included in the sale and if the building manager owns it. When we act on management rights purchases, it is not uncommon for us to see business inventories that include equipment listed as if it belongs to the seller when it actually belongs to the Owners Corporation. This is not usually a significant concern and once clarified it is generally a positive for the buyer, as it means one less expense in the future when it comes time to replace the equipment. On the other hand, what can be a significant concern for buyers is when the equipment being provided by the Owners Corporation is equipment that is actually meant to be provided by the building manager. From time to time we see businesses where essential equipment needed to perform day-to-day caretaking duties (such as a ride on mower) has been provided by

INDUSTRY

the Owners Corporation even though the Owners Corporation is under no obligation to do so. How these circumstances arose is not always clear, but what management rights buyers need to be aware of is that just because the Owners Corporation has provided certain equipment in the past, doesn’t mean the Owners Corporation will do so again in the future (if the caretaking agreement does not require it). An Owners Corporation agreeing to provide equipment for the building manager (when it doesn’t have to) might be seen as a gesture of goodwill by the Owners Corporation and could save the building manager on significant expenses. Most building managers would not think twice about the Owners Corporation paying for the equipment they need. With hindsight and a catalyst however (like a disgruntled owner with an axe to grind), the Owners Corporation spending its own money to provide the building manager with equipment (that the building manager should have provided itself), could be seen as a serious breach of the building manager’s duties under the caretaking agreement. What might start as a short-term benefit to the building manager could end up being an agreement ending problem in the future. Before you let the Owners Corporation pick up the tab for you, check if there might be some strings attached and consider what it might cost you in the long run if you ignore them. Liability is limited by a scheme approved under Professional Standards Legislation Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

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BCCM REPORT

Managing disruptive behaviours in short-term lettings

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

The popularity of shortterm accommodation platforms has revolutionised the way property owners rent their lots, providing an abundance of choices for both owners and holidaymakers. However, the convenience these platforms offer can sometimes lead to challenges for body corporate residents. This article aims to shed light on the current landscape and regulatory framework, specifically under the Body Corporate and Community Management Act 1997 (the Act), regarding short-term letting in community title schemes. Additionally, it outlines practical avenues for bodies corporate to effectively manage disruptive behaviours associated with short-term visitors.

Restricting shortterm letting One of the most common questions asked is whether a body corporate can choose to ban or restrict short-term letting. Based on decisions from the Queensland Civil and Administrative Tribunal (QCAT) and our adjudicators, the current position is that community titles schemes cannot create by-laws banning or restricting short-term letting.

January 2024

This is largely based on the by-law limitations in sections 180(3) and (4) of the Act, which provide that: •

if a lot may lawfully be used for residential purposes, the by-laws cannot restrict the type of residential use; and

•

a by-law cannot prevent or restrict a transmission, transfer, mortgage or other dealing with a lot.

The effect of these sections on attempts to restrict shortterm letting is demonstrated in the two case examples outlined below.

Case example 1: Body Corporate for Hilton Park CTS 27490 v Robertson [2018] QCATA 168 This QCAT appeal concerned a motion which sought to prevent owners from letting their lots for a period of less than six months. The appeal turned upon the meaning of the term ‘residential’ in section 180(3) of the Act. The appellant contended that ‘reside’ means “to dwell permanently or for a

considerable time”. However, Member King-Scott resolved that “the legislature intended that the term ‘residential’ would include holiday letting and/or short-term accommodation and that is the way it should be construed” in the Act. Member King-Scott also considered whether ‘other dealing with a lot’ in section 180(4) of the Act incorporated short-term letting. It was ultimately determined that short-term letting was a form of lease protected by this provision. Member King-Scott dismissed the appeal, upholding the adjudicator’s initial order that the motion was invalid and of no effect.

Case example 2: Admiralty Towers II [2019] QBCCMCmr 567 A by-law was created which required body corporate consent to be obtained for leases that were less than three months. One owner attempted to distinguish this by-law from the QCAT decision discussed above on the basis that it was not a blanket ban, but rather, a

INDUSTRY

regulation on short-term letting. The adjudicator determined that although the by-law was in line with section 169 of the Act which allows for the regulation of the use and enjoyment of lots, it still offended sections 180(3) and (4). It was observed that these sections are not only about outright prohibition – they are also about restriction. The adjudicator remarked that “the ordinary meaning of the word “restrict” is to place limits upon something. The limiting factor imposed…is body corporate consent. A short-term lease may not proceed without it, while longer leases may proceed without interference.” The adjudicator resolved that the by-law was invalid and ordered the body corporate to remove it from the community management statement.

Managing behavioural issues The body corporate may not be able to make lawful by-laws that specifically restrict short-term letting. However, there are some actions a body corporate and owners, who short-term let their lots, can take that may assist with issues that arise.

Addressing disruptive behaviour from short-term visitors requires a proactive approach to ensure a positive experience for everyone. Here are some steps that an information service or community management can take to manage and mitigate such issues:

Effective communication Effective communication can often be a preventative measure against disruptive behaviour. In our experience, by-law breaches often occur because the person was unaware of the by-laws at the time. Bodies corporate may wish to circulate certain information to owners involved in short-term letting – some examples might include: •

•

a copy of the scheme’s bylaws (possibly highlighting by-laws regulating noise, nuisance, or the use of recreational facilities); correspondence reminding owners to alert their short-term visitors to the by-laws; and information about bylaw enforcement in the event of breaches.

Appropriate signage may also be displayed in communal areas – especially recreational facilities such as pools, barbecue areas or tennis courts, drawing attention to relevant by-laws. Remember, an effective strategy often involves a combination of these measures, tailored to the specific needs and characteristics of the community. Regularly review and update these strategies to adapt to changing circumstances and feedback.

By-laws regulating the use of recreational facilities Instead of seeking to ban or restrict short-term letting, bodies corporate may consider regulating the use and enjoyment of common areas and recreational facilities. For instance, booking systems could be created to secure the use of recreational facilities for an upcoming event, or opening and closing hours could be set for the use of recreational facilities (as demonstrated in the case example discussed below). However, it is critical to remember that a body corporate is not free to create any by-law it wants – clear limitations on by-laws are outlined in the Act. For example, section 180(7) of the Act prevents by-laws from being oppressive or unreasonable, having regard to the interests of all owners and occupiers and the use of common property. Also, section 180(5) of the Act prevents by-laws from discriminating between types of occupiers. You can view the full list of bylaw limitations on our website and in section 180 of the Act. Disregarding the limitations in section 180 of the Act means that a body corporate opens itself up to disputes. If you are in the process of creating new by-laws and you are unsure whether they comply with the Act, we recommend seeking independent legal advice, as our office cannot assist you with drafting your by-laws. We have provided a case example below in which a body corporate successfully created a by-law regulating the use of its recreational facilities. However,

it is important to bear in mind that adjudicators’ orders are only guidelines, not precedents. Each matter before an adjudicator is decided based on its own unique circumstances.

Case example: The Grove [2018] QBCCMCmr 581 The body corporate adopted a by-law which prevented occupiers from using any recreational facilities on the common property between 10pm and 6am, unless they obtained the written consent of the committee. The applicant disputed the validity of the by-law, contending that it discriminated against shift workers who wanted to use the swimming pool after work. The adjudicator rejected this argument, stating that it is “in the interests of all residents that there be regulation of the use of recreational facilities on common property, particularly late at night when the use of those facilities has greater potential to disturb others”. The adjudicator also noted that an occupier who wants to swim quietly at 5am might still receive approval from the committee to do so under the by-law, whereas an occupier wanting to hold a pool party at midnight might not.

Local planning requirements Importantly, the regulation of short-term letting in community titles schemes does not end with the body corporate legislation. Local planning and zoning requirements could also affect the operation of shortterm letting in a body corporate. Bodies corporate and owners

who are thinking of using their lot for short-term letting should familiarise themselves with these requirements. Each local council has its own ‘local planning scheme’ which includes information about the permitted uses in a specific zone. There may also be a development approval for the scheme which outlines the current authorised uses for the property. You can contact your local council for more information about the local planning and zoning requirements for your body corporate and enforcement in cases of non-compliance. We hope that this article has helped to clarify this contentious subject and provide some practical options to manage some of the behavioural challenges posed by short-term letting. It is imperative to recognise that achieving a certain degree of harmony in community living means considering the interests of all involved. Doing your best to strike an appropriate balance between the interests of long-term residents and owner-investors, who are using their lot for short-term letting, may go a long way towards avoiding unnecessary conflict in this area. Collaborative efforts between bodies corporate, longterm occupiers, and short-term let investors can contribute significantly to achieving a harmonious coexistence. By actively working together, stakeholders can navigate challenges, promote understanding, and create a community where both short-term letting and longterm residency can thrive.

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INDUSTRY

January 2024

PERSON OF INTEREST

Young ideas in a wealth of experience At just 31 Chris de Closey, a father of two, is becoming a driving force for innovation in the management rights industry.

Chris de Closey

By Grantlee Kieza, Industry Reporter

That was a good grounding in the industry?

The accommodation entrepreneur’s company, Switch Hotel Solutions, employs ten people and has almost 60 clients stretching across the length and breadth of Australia. He says his aim is to provide resident managers with the best professional support at an affordable price so that they can dramatically grow their business through strategic marketing campaigns and the assistance from relief staff.

Yes. Outrigger Twin Towns was a 350-room letting pool management rights property when I was there. My background has always been management rights rather than hotels. So I have a very good understanding of how management rights works and how to step into it. I was with Twin Towns for six and a bit years including two years through the end of school. I got a Cert 4 in hospitality and then a Bachelor of Tourism while I was working at Twin Towns. I then made the jump to work for Mantra six months before they bought Outrigger. I was at Mantra for two and a half years and while I was there I gained my master’s degree with an MBA from the Australian Institute of Business.

What’s your background in the accommodation and property sector? I started with a schoolbacked traineeship at the Twin Towns Resort at Coolangatta when I was in Years 11 and 12. It was actually a school subject for me, so I’d do one class at school and then leave for Twin Towns at 10 in the morning to spend the day there. I thought it was the best thing ever. It taught me all about management rights from a young age, and I’d get paid to take a day off school.

January 2024

INDUSTRY

I had another job lined up at another property but one of my old friends from Outrigger was the area manager on the Gold Coast for Expedia and he said, “why don’t you come and work with me?” I moved to Expedia and was there for another couple of years. Was all of this work based on the Gold Coast? Yes, except for a month or so in New Zealand when I was working for Mantra. At Expedia I was looking after the whole area from the Gold Coast down to Yamba, as a market manager. Then I saw these guys doing consultant work at some of the properties – revenue, marketing,

You have ten people working with you, do they have a similar background in property?

and sales consulting – and I knew I could do it better. I knew there were a lot of people in hotels and management rights who were coming into the business needing assistance and I knew that I could provide it at a better price. So, a month before I got married I quit my job at Expedia and started my business Switch Hotel Solutions. That was in September 2019.

We’ve got teams focusing on different aspects of what we offer. We’ve got a marketing team, a social media team and a revenue team. We’ve got an operations team that can help with the running of things, and we’ve got accounts and administration that can help with that, too. We do have a wide variety of support and each person is working towards the main goal of generating more bookings for our clients and providing a high quality of support.

Things grew quickly? Yes. We started with a couple of clients and we now have almost 60 from as far north as Townsville, as far south as Phillip Island and as far west as Kununurra in Western Australia.

Management rights has been under fire lately with threats to cut terms and other legislation. Do you think the industry has a big future?

It covers pretty much the length and breadth of the country. We’re not in Perth or Tasmania yet, but we will be eventually. What services do you provide? We provide outsourced support for hotels, motels and resorts, focusing on sales, marketing and revenue. We run marketing campaigns, we do their sales representation for them. We might go and negotiate a deal for Luxury Escapes for example. We also develop revenue strategies for our clients and we help set up their revenue strategies. At the moment our niche is small scale management rights and what we’re finding is that within this space a lot of people come in and they have to be the jack of all trades. They do the gardens, do reception, sometimes they clean – they do everything.

Chris de Closey with Pippa, Tommy and wife Lisa

Over the last 10 to 15 years there’s been a real sophistication of management rights

The revenue, the sales and marketing space now requires quite a niche understanding to make sure you get it right. If you get it wrong, you can potentially cost your business a lot of money.

a constant problem for small scale operators to find time to take a break, especially if they’re new to the business and they haven’t really got that support network established already.

What we find is a lot of these mum and dad operators and the small-scale management rights operators will give us the reins to help them take control of their business.

How have you turned businesses around with your campaigns?

We develop all the strategies needed to ensure that they are going to have the best representation in terms of the best bookings, the best marketing campaigns, and the best sales representation that is suited to their business. What about relief staff? We have a management package that we can offer to clients where we will run the business for them. We are looking to make more of a move into relief and we do have a couple of relief managers lined up. It’s

Without giving you the names of the properties, we’ve had instances of managers coming to us after having bought management rights. They’ve asked us to take over the reins and we’ve doubled revenue, and then we’ve doubled it again the next year. It’s what we do and what we do well. We’re very good at generating revenue growth for clients and in terms of cost we do it with a very cost effective scenario. We have different packages to suit people and we are very transparent with clients. We don’t lock anybody in. Everything we do is month to month so that way, customers can have an understanding that

we must make sure that we are going to perform for them every single month and meet all our obligations of working together. Have you found that new people in management rights have been crying out for help? Yes, we find that they are really looking for support. They come in with so much on their plate and learning on the go, we are here to help them through that process. I’ve got that background in management rights. I understand it. I also walk the walk in it because I own a couple of management rights myself – on the Gold Coast and at Yeppoon. I’ve also got a couple of short-term letting businesses as well, so I know the business back to front and how to get the best out of their businesses. We can guide them through all aspects of the business, and we often find ourselves offering support for a wide variety of scenarios for our clients.

INDUSTRY

Yes, I think the industry will continue growing. Management rights is always going to have a place in the market. There will always be a place for it because there will always be people who need to have their properties looked after. I think what is going to continue to happen is that the good operators who choose to make good business decisions such as hiring consultants will continue to flourish. Over the last 10 to 15 years there’s been a real sophistication of management rights. Good operators are going to continue to grow. Our aim at Switch Hotel Solutions is to ensure that managers and operators can get the best professional support possible and at an affordable price. But it’s also having someone who is in the business and who knows the business giving that advice and assistance. We’re not just sitting here telling operators this is the way that it should be because that’s what we think, we’re doing it because we know the solutions that we offer really work and they’ve worked for us in our business and across a number of scenarios. We like to undercharge for the value we bring and over-deliver with the best service possible. We want to ensure that the management rights business flourishes, for our clients and for our business as well. You’ve also got a young family to keep you busy away from work? My wife Lisa and I have a two-anda-half-year-old son named Tommy and a little girl named Pippa who is just 16 weeks. They’re fantastic. I feel very blessed. January 2024

LEGAL EASE

The importance of master keys

A caretaker’s obligation in respect of master keys has become of particular importance in recent years when it comes to buying or selling a business.

Traditionally, an outgoing manager will have handed over all keys at settlement without a buyer paying too much attention to whether all keys were in place. It was the assumption of a buyer that whatever keys they received were those originally received and held by

 Structuring  Income Verification  Accounting/Taxation  Superannuation  Audit

Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business? We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry. Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.

PO Box 391 WEST BURLEIGH QLD 4219 Phone: (07) 5534 4333 | Fax: (07) 5534 2081 reception@jonathangrant.com.au | www.jonathangrant.com.au

January 2024

By Will Kenny, Mahoneys

Most agreements require a caretaker to hold and maintain a register of master keys on behalf of the body corporate and lot owners. While the duty itself is straightforward, we have seen various instances in recent years where managers selling their businesses have become liable for considerable costs (in some circumstances up to tens of thousands of dollars) where master keys have been misplaced or are otherwise unaccounted for. the previous manager. Unless the scheme had a designated locksmith with their own key register containing a record of all master keys issued, there would have been no way for a buyer to easily identify if all master keys had been provided to them. It was not common practice for a buyer to raise any queries and nor for a body corporate to request a reconciliation.

argument against any potential claim of the body corporate. The difficulty is that a body corporate can use its leverage to withhold consent and insist that the outgoing manager re-key the building before approving an assignment. Regrettably, this puts the outgoing manager in a difficult position where they are obliged to accept the body corporate’s demands.

Nowadays, we are often seeing bodies corporate, at the time of an assignment, ask the outgoing manager for a register of master keys reconciled against the locksmith’s register. If it is apparent that there are missing keys issued by the locksmith (even where any number of keys may have been issued to a previous manager) a body corporate will treat this as a serious security concern.

What can you do? If there is no locksmith for your scheme with a corresponding register, you should check to see if there was a record of keys handed over by the seller when you took over the business. If not, it is almost impossible to determine whether all keys remain in place. However, you should start your own register of the keys you hold.

In circumstances where there is no other option but to re-key the building, a body corporate may oblige the outgoing manager to pay the costs involved prior to the completion of a sale. It is a harsh and unfortunate reality for managers who were innocently unaware of what keys they should have received at the time of a purchase. An outgoing manager may question their liability if they have not lost any master keys during their tenure. A standard term of the assignment is that the body corporate cannot hold the incoming manager liable for any breach of a predecessor. For an outgoing manager, this is the best

MANAGEMENT

If there is a locksmith and it is clear that there are missing keys, you will need to treat the issue carefully. As is the case in any building, it will all depend on the relationship you have with the committee and how cooperative they are in handling the issue. Some bodies corporate will be satisfied if you can demonstrate that the keys you now hold (even though they are not all that may have been issued) are all that were originally provided to you. If you are intending to sell, you should expect that either the buyer or the committee will ask for a master key reconciliation. The industry standard special conditions now require a seller to provide copies of key registers to a buyer.

Affordable high speed internet for property managers “Enabling internet for the new Foxtel services; Business iQ over existing coax” As a Telecommunications Carrier in 2023 we can at last see Queensland’s regions better connected than ever with thousands of kilometres of world class optic fibre ready to connect.

since pre-COVID, and they are enabling the region to address many challenges such as :

The connectivity of fibre can meet businesses, apartments, resorts and commercial estates without having to use the old copper or wireless, at last. We are not referring to NBN here. We are talking about real gigabit performance without dropouts and congestion that are responsible for holding our regional economy back. We are talking about reliability, high availability, zero congestion, competitive advantage, and world class standards. These high performing values are about half the price

•

The migration of working from offices to regions

•

The importance of performing a video conference call

•

The critical value of uptime for Eftpos, e-commerce, VoiP

•

Using cloud computing

•

Enabling internet for the new Foxtel services ; Business iQ over existing coax

•

Supporting the massive uptake of 4K TVs, media streaming, gaming and telemedicine

•

Feeding the power of the new WIFI 6 modems, designed to deliver gigabit internet around building

•

Meeting the expectations

of the tsunami of urbanites migrating to the regions and holiday makers expecting proper internet.

Now that the future is here, how do you go about upgrading higher value high speed internet?

•

Dealing with the higher volume of devices in use concurrently in dwellings and workplaces.

A free audit is a good start. Coverage is now huge and there are plenty of technologies to get “fibre speeds to the room”.

•

Enabling Apple updates and gaming

WORLD CLASS INTERNET FIBRE OPTIC AND COAX

UNLIMITED USAGE

Business iQ READY

FREE SITE AUDIT

“…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.)

0 4 4 8

1 8 9

– Eric van Meurs

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1300 GIGABYTE QUEENSLAND WIDE 4 4 4

2 2 9

MANAGEMENT

sunri sei nternet.com .au January 2024

BY ALL ACCOUNTS

Warning: Employee or contractor? By Jonathan Hanaghan, Director, Jonathan Grant Accountants

Do you engage the services of independent contractors? Have you given thought over the possibility that they could be employees? Getting it wrong can cause you big trouble. Following the GFC, Australia has experienced an incredible surge in the amount of contract, temporary and freelance work - dubbed ‘the gig economy’. The underlying force behind an increase in contract related work vests on the grounds of higher flexibility, and lower costs associated with outsourcing work to a third party. The difference between an employee and an independent contractor is not defined by a fine line. The relationship between yourself and your independent contractor is called a contract for service. On the other hand, a contract of service is the relationship set between yourself and your employee. This is certainly a subtle difference but should not be considered lightly. To determine whether your worker is performing a contract for service (contractor) or a contract of service (employee), the court system will analyse several factors, which is known as the multi-factor test:

January 2024

The difference between an employee and an independent contractor Ability of the worker to subcontract/delegate: An employee can’t pay someone else to do their job, but a contractor can. Basis of worker’s payment: An employee may be paid for the time worked, or per item, activity, or on a commission basis. Contractors are paid to achieve a specific result. Equipment, tools and other assets provided by worker or provided to worker: An employee is mostly provided with tools and equipment by their employer. Contractors mostly provide their own tools and equipment. Commercial risks of worker: Businesses are responsible for their employees work and so employees do not

take on commercial risk. Contractors will be personally liable to rectify any defects. Control over the work: A business has full discretion over what work needs to be completed by their employee and how it is performed. Contractors can decide how their work is done provided it is within the terms of the contract. Independence of worker: Employees form part of the business and therefore are not independent. Contractors operate their own business independently – they can accept or refuse additional work. Other important factors to consider are the exclusivity of the worker and if the worker advertises themselves ‘to the world at large’. Exclusivity asks

MANAGEMENT

whether the worker is hired by numerous businesses or must remain exclusive to their employer. Advertising ‘to the world at large’ would likely mean that the contractor has a business name and logo in place, they have a work uniform with their own logo, and they have a storage shed or office that they can operate from. For example, in Rabba v OekeGuy Pty Ltd T/A PeleGuy [2013] FWC 70, the worker was a salesperson who was required to sell products to convenience stores and petrol stations. The features that supported the salesperson as an employee were that he worked exclusively under their employer, was unable to engage others to perform his work, was subject to the supervision of the employer, and selling goods was a vital part of the business of the employer. These facts were weighed up against the fact that the worker submitted invoices, paid for the cost of their motor vehicle fuel, was not subject to PAYG tax, would determine his own hours, and was paid by commission on sales. Perhaps a normal person would be led to believe the worker is a contractor as employees do not invoice their

Avoid the myths Myth: If a worker has an ABN they’re a contractor. Fact: The existence of an ABN does not confirm that a worker is a contractor. An employer may force an employee to obtain an ABN to make them look like a contractor and hence mitigating super and tax obligations. This is known as sham contracting. Breaching the sham contracting provisions under the Fair Work Act 2009 will lead to severe penalties and contraventions. Myth: If a worker is a contractor for one job, they will be a contractor for all jobs. Fact: The working arrangement and specific terms and conditions will determine whether a worker is an employee or contractor for each job. A worker could be an employee for one job and a contractor for the next job. It is paramount to make an ongoing effort to ensure there are no differences between your worker’s contract and their actual working conditions. If you hired a contractor last quarter, and suddenly their job role has turned into an employee, you must immediately start withholding PAYG tax on their behalf, pay the super guarantee minimum, and obtain work cover. Myth: If a worker submits an invoice for their work, they’re a contractor. Fact: The existence of an

invoice for completed work does not confirm a worker is a contractor. You must examine the working conditions of the worker – many court cases are not decided over whether the worker has an ABN, if there was a contract in place, or if the worker submitted an invoice, they come down to the factors mentioned before (multi-factor test) such as the exclusivity of the worker.

Do I have to pay my contractor’s super? Even after you have confirmed that you have hired a contractor you may still be liable for super contributions on their behalf. The Superannuation Guarantee (Administration) Act 1992 (Cth) states that a contractor is entitled to superannuation contributions if they work under a contract that is “wholly or principally for the labour of the person.” Employees will have to pay the 11 percent Super Guarantee minimum. If you incorrectly classify an individual as an employee or contractor, you may be liable for: •

superannuation charges;

•

additional payroll tax;

•

penalties and interest;

•

unpaid annual and long service leave; and

•

compensation for unfair dismissal or other remedies.

Since the induction of taxable payments annual reports (TPARs) to the building and construction industry in 2014, the ATO has continued to strengthen its resources to close the gap of noncompliance. Recently, the ATO has broadened this scope to several other industries and

employer and do not determine their own hours. However, the inability of the worker to subcontract, and the fact that he was not conducting his own business when he performed the work gave the court no option but to conclude that the worker was an employee.

their businesses. Businesses providing cleaning services must now lodge a TPAR. Clearly, this has implications for our businesses in management rights. If you have a management rights business and 10 percent or more of your income is for cleaning services, you must lodge a

TPAR. Although, if you fall under this threshold, it is still a wise decision to lodge a TPAR nil report to avoid questioning from the ATO later down the track. If you are still unsure if your worker is a contractor or an employee, please seek professional guidance from your accountant.

PROGRAMME

ACCOUNTANTS & AUDITORS

Count Gold Coast

BEDS & BEDDING

AH Beard Pty Ltd

SOLICITORS

Bugden Allen Graham Lawyers

VALUERS - REAL ESTATE

Accom Valuers

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

SMALL MYERS HUGHES LAW • BUSINESS • RELATIONSHIPS

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

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

MANAGEMENT

January 2024

MOTEL MARKET

Time to sell? By Andrew Morgan, Motel Broker/Partner, Qld Tourism & Hospitality Brokers

The variables that go into determining the answer are many, however price and market sentiment are two of the major contributors to how long the process may take. The old saying, “right buyer at the right time” can change any expectation of timing very quickly.

When it’s time to sell, what is a reasonable timeframe to expect a motel to sell within?

Achieving the highest price possible is any seller’s goal

In general terms if a motel is priced correctly a standard selling timeframe will likely be around four months. This is a very general statement though and the number of variables that go along with this are many. One thing, though, is for sure -- if the business or property is overpriced at that time, then it will most likely sit on the market for much longer. In general terms, a marketing commencement date to settlement of a Contract of Sale within a four-to-six-month period is acceptable when a motel is priced and marketed correctly in a standard market environment.

and complete. The time taken to source a buyer may be shorter, however, external factors will always extend timeframes to settlement. Delays in gaining finance approvals are a perennial issue for many different reasons. There are many people involved within the sale process not just a buyer and seller and a lack of respect for contractual obligations from anyone involved within the process causes delays with a knock-on and compounding effect.

The strength of the market will dictate market prices achieved and marketing campaign timeframes, however the above mentioned is a good guide in most markets. Even when markets are running hot the logistics of buying a business do take some time to formalise

We find in the field of accommodation business and property sales, often the seller does not wish the business to be displayed publicly for sale. Hence an off-market sale campaign can be conducted. This is becoming more common as sellers do not wish certain

January 2024

individuals (who do not have a genuine interest in buying the business) to receive their business data. This has become more relevant as accessing information online has become easier as technology improves. It allows those who either cannot finance the transaction or do not have a genuine buying interest in the business to find out private information about the business or owner. Enquirers often ask why we do not include the locations of all the businesses that are for sale on our website. The answer is that quite often we do, however more and more of our clients have realised the value of confidentiality and do not want their business compromised in any way by those who are not genuine potential buyers.

MANAGEMENT

Off-market campaigns will often see a motel offered to genuine buyers that the broker is aware of and are actively seeking such a business. These campaigns will allow a sale to occur, generally in a reasonable marketing timeframe, and the first any nongenuine buyers know about it is when it shows up as a completed sale. The old line of “you can’t sell a secret” still has some merit, however those genuine buyers that maintain a relationship with their broker will know what is for sale before anyone else, therefore, there is no secret! It is also relevant to add that off market campaigns suit certain property types and business types more than others. There is no one size fits all. Achieving the highest price possible is any seller’s goal, however stepping over the line and pricing too high is an issue that is not always considered. A seller must do their research and come to their own conclusion of value based on all the collated information. Some pitfalls may include sales evidence that was not an “arm’s length” transaction, or incorrect information (or lack of information) that may have been provided. The way to protect oneself from this is to arm yourself with information on genuine recent sales of a similar nature, what is currently available for sale, how does the motel compare and general market information on what may affect potential buyer’s assessment of value, such as interest rates rising or falling, access to finance, and economic issues. A successful sale at the highest possible price will not be achieved by sitting on the market over time, quite the opposite. All that will happen is the price will come down and down over time until eventually it meets the market or sells below it. Meeting the market within a reasonable time is the best way to avoid a protracted selling timeframe and ultimately underselling a product.

THINKING MR

Once more into the abyss – No way! There’s not much we can do about the horrors going on internationally, but we can sure make a difference at a local community level By Mike Phipps, Mike Phipps Finance

Abyss: noun. A deep, immeasurable space, gulf, or cavity; vast chasm. Anything that seems to be without end or is impossible to measure, define, or comprehend: “The abyss of their grief and sorrow.” As some of you have observed, I’m a bit of a glass-half-empty kinda’ bloke. I blame it on my years in banking where every decision carried risk and those risks needed to be understood and mitigated. It was also par for the course to distrust borrowers as a default setting until they proved otherwise. To be honest, those traits have served me well but have also blinded me to the inherent good in most people, a personality trait that I have come to regret. More on that later but first… This time last year, as is my habit, I made my usual wild and crazy predictions about the year to come. I’d like to point out that I got the fate of former NZ prime minister Jacinda Ardern right, and the rise of Jacinta Nampijinpa Price on the Australian political stage pretty much spot on too. I also managed to foresee the fate of the current federal government’s IR legislation, which continues to languish in some political version of purgatory.

My prediction that the ‘managing director’ would not grant me permission to acquire an exotic Italian motor car also proved correct. As she says, “Don’t torture yourself darling, that’s my job!” As expected, loan impairments and arrears remained very low during 2023 and tourism continued to perform strongly. Demand for debt in the accommodation and property management sectors appeared gravity-defying, despite expectations of a slowdown. I highlight these outcomes in order to avoid scrutiny of the one I got wrong. The prediction that the cash rate would plateau mid-2023 at 3.25 percent proved what politicians might refer to as a courageous call. In fact, the mid-year plateau turned out to be 4.10 percent with the rate rising to 4.35 percent by November 2023. I think I failed to appreciate the propensity of politicians to repeat the same mistakes while expecting a different result. As Albert Einstein rightly observed, that’s the definition of insanity.

attributed to current government economic and environmental policies. As such, I think we are in for a sustained period of higher cash rates until the current mob in Canberra gets tipped out or radically changes current policy settings. In the interim, I wait with bated breath for my electricity bill to drop by $275, as promised by our current prime minister. On the local politics front, I can’t wait for the Queensland state election in October. I predict a clear LNP victory, not because the current opposition is any good but because the incumbents are so very bad. I expect to see voters use the opportunity to punish Federal Labor, given they won’t have an opportunity to do so directly until 2025. By then the Feds will have lost their nerve and punted Albo in favour of Bill Shorten. Surely everyone deserves a second chance. They’ll then lose their nerve again and bring Albo back. Sounds fanciful until you reflect on the Rudd-Gillard-Rudd debacle.

So, what of 2024?

Globally I fear continued conflict and heartbreaking nightly news coverage.

Let’s start with the dreaded cash rate. The RBA (that’s the Reserve Bank, not Resort Brokers Australia, albeit they are not without influence) are saying that inflation is looking sticky. That’s economist talk for saying that despite belting the circa 40 percent of mortgaged Australians with ever-increasing loan payments, it hasn’t stopped rents, fuel, energy, and food prices from rising. These trends can all be

Here’s the thing though. Setting aside recent unpleasantness from some sectors of our community, I am sensing a growing kindness in our society. Strangers seem more likely to strike up a conversation or help load the groceries into the car. Or, in my case, the latest Dan Murphy’s raid. Fellow diners in restaurants seem keen to interact with other patrons, and I reckon more people are letting me into traffic from side streets. Of

MANAGEMENT

course, that may be the enormous SUV I drive and the fact that I don’t slow down while sounding the horn loudly, but I digress. I dropped some unwanted items into a charity centre recently and got talking to the wonderful volunteers. They’ve never had more support from donors and people wanting to help. Got talking to a few other donors and a common theme emerged. There’s not much we can do about the horrors going on internationally, but we can sure make a difference at a local community level. My gut feeling is that ordinary citizens are so removed from the political class, that they feel a need to reconnect with others at a local level. I’m convinced that the recent referendum created tensions that don’t sit well with most people, and there is a concerted effort going on to reconnect through the values that we share. Here’s my last prediction for 2024. I predict to not let the world get me down, to not allow political insanity to ruin my love for my country, and to hold my family and community close. I’ll let you know how that goes. The phrase “all politics is local” is commonly used in United States politics. Variations of the phrase date back to 1932. Tip O’Neill, a former Speaker of the U.S. House of Representatives, is most closely associated with this phrase, although he did not originate it. January 2024

GOOD GOVERNANCE

Standards for building management consultants Not all auditors are principled and not all auditors subscribe to an industry standard By Lynda Kypriadakis, The Diverse Group of Companies & DPX Projects

If you are a caretaking services provider working under a Caretaking Agreement with a body corporate or owners corporation, no doubt you are aware that the committee can order a caretaking performance audit against your performance at any time. A caretaking performance audit is a review undertaken - often by a third-party consultant who assesses whether or not the caretaker is delivering the duties under the Agreement to the correct standard. The report arising from the audit process can be used by the body corporate or owners corporation as evidence of breach of contract to form the basis for a remedial action notice. The desire to have a performance audit done usually arises within the committee when they believe that the duties are not being delivered to the correct standard. So what is the “correct standard” to which the duties should be delivered? This simple question is responsible for $100,000s being spent on caretaking performance management actions every year in Australia…

Principled versus unprincipled auditing methodology There are “principled” and “unprincipled” auditing styles.

January 2024

“Principled” auditing requires confidentiality, integrity, objectivity, independence, skills and competence, audit evidence, audit reporting, and a measurable standard to audit against. A principled auditor is one who conducts audits in accordance with a measurable standard and does not deviate from that standard, regardless of the site or client. This means that it does not matter who engages the auditor (either the body corporate or the caretaking services provider can be the client) as the report will be identical at the end of the audit process. This is because the principled auditor works to an objective industry standard that is measurable, justifiable and reasonable, and cannot be influenced or manipulated by others, so regardless of the client, the report findings will be the same. Reports arising from a principled auditing methodology in accordance with an objective industry standard are more likely to support desired outcomes from both parties to the caretaking services agreement. This is because the objective standard is known and measurable, and therefore can be achieved through remedial actions. Remedial efforts can be measured against the objective standard and “signed off ” once resolved because the required standard for duties delivery is clear and measurable. The problem is that not all auditors are principled and not all auditors subscribe to an industry standard. An unprincipled auditor is one who does not work to principled auditing standards and instead works subjectively,

relying on their own opinion to measure findings as opposed to gathering and reviewing data evidence in accordance with a standard. Unprincipled auditing tends to be changeable in approach and findings and inclined to entertain outside influence and manipulation. Reports arising from an unprincipled auditing methodology that does not align with any objective or measurable standard are more likely to support an adversarial situation. This is because the subjective opinion audit that is not supported by an objective measurable standard cannot possibly be clear about the required outcome needed to resolve the alleged breach. Any remedial actions taken are open to subjective interpretation because no objective measurable standard is applied. It becomes a battle of “one word/ opinion against another”. ABMA Building Compliance Accreditation Agency Limited is the custodian of the ABMA Building Management Code© which is the only documented guide to objective industry standards and regulatory compliance requirements for the maintenance of common property in strata schemes in all states of Australia as well as New Zealand. The ABMA, being a not-forprofit organisation, has invested proceeds from the sales of the ABMA Building Management Code© into (among other things) the development of a collection of industry standards for building management in strata and community title properties. The standards collection is intended

MANAGEMENT

to support the development of principled auditing, mediating, and reporting requirements for building management consultants and industry practitioners and so far, includes: •

Standard #1: Remuneration reviews in building management agreements.

•

Standard #2: Building management performance reviews in building management agreements.

•

Standard #3: Schedules of duties for building management agreements.

Each standard contains inspection, testing, data collection, data analysis, valuation and reporting requirements to demonstrate conformance with the standard. Reference to the standard may be applied to demonstrate the minimum performance delivery standard required by building management consultants and industry practitioners such as time-in-motion study consultants, principled performance auditors, and those that prepare schedules of duties for building management agreements. The collection of standards provides a set of requirements to increase the probability of effective sustainable delivery of building management consulting services to a dependable and professional level. Continuous correct delivery of building management and associated consulting services as a basic industry criterion will not only support the ongoing self-regulatory and contractual compliance for stakeholders but enhance the overall performance of the building management services sector, which is likely to reduce the possibility of disputes arising between parties to building management services agreements. Especially where an objective standard can be applied to caretaking performance auditing, remuneration reviews, and preparation of schedules of duties for 25year caretaking agreements where stakes are high.

BUILDING RELATIONSHIPS

Welcome to 2024

cover extensively in our half-day course. Essentially, it provides an overview of where all the property owners in your community stand in their property journey. This information is of utmost importance for your business strategy, keeping you up to date with all the latest developments within your community.

By Kelley Rigby, Managing Director, Lett s Rebuild

I have a feeling 2024 is going to be a big year for all, and I cannot wait! Although I don’t dwell on the past too much, except to appreciate how far we’ve come, I must admit that last year was challenging for our family. So, we’re absolutely thrilled to welcome a fresh start. Now, I’m not big on New Year’s resolutions, but let me tell you what I’m really into, mapping out the success of my business for the year ahead. How about you? Have you taken the time to sit down, review your business, and come up with strategies to conquer 2024? If the answer is no, there’s no need to worry. This article contains a few tricks, tips, and motivations to help you accomplish just that. And if that isn’t enough, you can call me for a motivational chat or a little kick up the bum.

First and foremost, a comprehensive understanding of your business goals is vital. Take the time to outline what you aim to achieve in 2024 and the steps you need to take to reach those objectives. This might include increasing your investors in your letting pool, furthering your knowledge and education, improving operational efficiency, creating and maintaining a property and community pipeline (I will explain this later in the article), and my very favourite making more connections with your community.

Remember, providing exceptional services to ALL parties is often the key to business growth and community loyalty.

Furthermore, by understanding your investors, body corporate committee, body corporate managers and owners’ needs, wants, and preferences, you can tailor your services accordingly.

Okay, so I’d like to touch on something we referred to earlier called a property pipeline. This powerful tool has the potential to transform your business forever, and it’s something we

Another important aspect that I really don’t like to mention but know it’s vital is considering the competition. Keeping a close eye on your competitors, understanding their strengths and weaknesses. This will enable you to identify opportunities to showcase once again the advantages of your onsite team, in all aspects of your business, property management, sales and caretaking.

You might be wondering, “What on earth is Kelley talking about?” Well, let me give you an example of what a property pipeline might look like: Unit 1, Owners Bob and Mary: Planning to add the property to their investment portfolio in two years. Implementing a Winback Marketing Strategy. Unit 2, Owners Scott and Isabelle: Considering the sale of their property in six months. Implementing a Sales Marketing Strategy. By incorporating these strategic implementations into your business, you can ensure that you continue to defend, protect, and grow your business. As you embark on the year 2024, take the time to strategically plan and align your business objectives. With a well-crafted strategy in hand, combined with your dedication and hard work, you can maximise the potential of your management rights business. Here’s to a prosperous and successful year ahead.

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

MANAGEMENT

January 2024

Creative solutions: Managing the holiday rush with minimal staff Navigating the busy festive season with a lean team requires strategic planning By Sam Steel, Resly

The festive season marks a time of heightened excitement and increased occupancy around Australia. However, handling the inﬂux of guests amid a staff shortage poses a significant challenge.

In such circumstances, hotels must think innovatively and embrace out-of-thebox strategies to ensure a seamless guest experience. I have put together some unconventional yet practical ideas for hotels to navigate the bustling festive season with a skeleton staff:

Self-service solutions Implementing user-friendly digital

One of the Sunshine Coast’s most experienced firms in on-site management rights transactions.

tools such as online check-in can significantly reduce the workload on the limited staff. Digital tools can assist guests in check-ins, room service orders, and local area guides. How about having a self-serve station for replacement towels and toiletries? All of this allows the staff to focus on more complex tasks and personalised guest interactions.

Collaborative partnerships Forge partnerships with local businesses or service providers to extend support during peak seasons. Collaborating with nearby restaurants for overflow dining, partnering with tour companies for guest excursions, or even teaming up with laundry services can alleviate the burden on the hotel staff while offering guests an expanded array of services.

Cross-training and ﬂexible roles

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

January 2024

Train existing staff in multiple areas, enabling them to take on diverse roles during peak hours. For instance, a front desk employee could assist in the restaurant, or housekeeping staff could lend a hand at the reception. This cross-utilisation optimises efficiency without compromising service quality.

Isabella Mansell

Guest engagement through Virtual Assistants

SUNSHINE COAST & QUEENSLAND WIDE

(07) 5443 5266 simpsonquinn.com.au

Deploy virtual assistants or chatbots on your website to address common guest inquiries, make reservations, or offer recommendations. These AI-driven systems can provide

MANAGEMENT

instant responses, easing the strain on staff while maintaining high guest satisfaction.

Pre-packaged experiences and amenities Create pre-packaged holiday experiences or amenities that require minimal staff intervention. For instance, offering curated gift baskets, DIY gingerbread house decoration kits, or pre-planned local itineraries for local attractions can reduce the need for extensive personalisation, while still enhancing the guest experience.

Prioritised service allocation Implement a tiered service approach where staff focuses on high-impact areas. Properties can allocate their limited resources more effectively by prioritising critical services such as guest check-ins, dining experiences, and security. This ensures that guests receive top-notch service in essential aspects.

Staff wellbeing and support Encourage and facilitate regular breaks, provide adequate support systems, and show appreciation for the hard work of the skeleton staff. A motivated and supported team will perform more efficiently, ensuring that guest needs are met without compromising quality or staff morale. Navigating the busy festive season with a lean team requires strategic planning, technological innovation, and a willingness to adapt. Hotels that embrace these unconventional, yet pragmatic solutions can survive and thrive during the holiday rush while maintaining exceptional guest experiences. The key lies in leveraging creativity and resourcefulness to optimise operations and guest satisfaction, even with a skeleton staff.

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Gyms: An essential facility Not so long-ago dishwashers and air conditioners were considered unnecessary luxuries, while a colour television was considered a billboardworthy feature. Nowadays, these items are expected and if you’re not advertising more modern facilities, people will look elsewhere. Competition is fierce and the demands of guests and tenants are ever-increasingly high. Accommodation properties are multi-faceted and so it is crucial not to lose guests to other establishments simply because they are better facilitated. The more modern facilities you can advertise, the more guests and clients you will have. So, in the grand scheme of things, a gym is not a major expense for your business, particularly when you can be certain it will pay a dividend time and time again. In terms of gym equipment, what you need will depend on space - people expect a treadmill, followed in order of preference by a rower, a bike, a cross trainer and, finally, strength equipment.

January 2024

Ben Bass Gymworks

Free weights are ever-increasing in popularity and if you have a lot of space, this can fill an area with minimal expense. Gym expenses include equipment, maintenance, service calls, repairs, parts and labour and legal obligations such as electrical safety act compliance and associated WHS requirements that need to be adhered to. Costs will vary between facilities; budget for a capital outlay of approximately $10,000 for a small or ‘boutique’ three-piece gym, while larger facilities should expect to invest around $25,000. When it comes to financing, the fundamental difference between purchase, lease or serviced lease is that the purchase option

requires an upfront capital outlay and ongoing assessment. A lease is a financed version of the purchase option. The serviced lease requires no upfront capital and ensures an agreed monthly cost, making budgeting simple by including equipment, maintenance, repairs, parts, labour, electrical safety act compliance and equipment upgrades, in a flat monthly rate thus making the serviced lease, by far the most popular option among building managers and bodies corporate. There is no governing body or classification system that determines if a piece of gym equipment is suitably designed for home, corporate or commercial use. Any company can claim any piece of equipment is commercial and recommend it to you, so the focus needs to be on the warranty for you to make the right decision regarding your choice of equipment. A warranty is also meaningless if there is no one to cover it. If the process of lodging a claim is long and arduous, if the parts take weeks or months to arrive or, worse still, if the equipment is not warranted for use inside an accommodation facility making a claim will thus prove very costly.

MANAGEMENT

It’s important to note, that most gym equipment found in retail sports stores is imported and distributed by other companies and they decide the terms of the warranty and not the retailer. Warranties should cover all components for a minimum of three years including service calls, parts, labour and freight. Buyers beware of disclaimers that exclude “fair wear” as this omits items such as belts, decks, bearings, pedals, and straps from the warranty. This minor detail can end up costing you thousands of dollars, so if a supplier is not prepared to give you this warranty, walk away. On the other hand, warranties need not cover such things as rust and fading nor external factors such as water damage from pools, abuse, theft or vandalism. They just need to cover aspects of the equipment under ordinary use for which the equipment was designed. Make sure to understand the procedure in lodging a warranty claim before purchasing equipment and request a personal contact name and number for someone who will address any issues you have, to resolve problems quickly and easily and obtain written advice that the warranty

Before

care requirements. A few extra dollars here pales in comparison to a poorly maintained facility that inevitably costs you guests and tenants and jeopardises your insurance coverage.

Insurers insist on service, maintenance and safety reports and the industry has evolved to see service intervals no greater than three months. Maintenance and safety reporting should be viewed as a prudent loss control measure because your insurance dollars will be of no use if you are not meeting your duty of

Another terrific tip is to create a pleasant workout environment that encourages people to take advantage of your facility. The smallest space can be turned into a fantastic boutique style gym with simple additions such as mirrors, posters, screens and air conditioning; all adding to the positive appeal of your property.

GYM

Gym Maintenance

maintenance on a quarterly basis once completed you will have a

along with detailed

SAFETY REPORT

199

encourages guests and residents to maintain a higher level of cleanliness, thereby increasing the appeal of your facility. Pull the focus of your property’s online presence toward your facilities. If you’re not advertising the gym, you’re not meeting expectations and the appeal of your property will suffer. In a time when workouts are part of everyday life for a large percentage of people, a gym has certainly become a prerequisite.

Safety Report Body Corp. Building CTS1234 100 Brisbane St Brisbane Qld 4000

2001

2023 2021

date 01 01 01

1300 496 967

Report

1000

Risk Assessment

030303A

INSPECTION DETAILS

Strength

Cables

Grips

Clips SAFE

Pins & Slides

Pulleys

Covers

sign

COMMERCIAL REPLACE

Frame

Guide Rods

Handles

Parts Available

Rollers

Cosmetic

TREADMILL

SAFE

LCB

ASNZS3760

Incline Motor

Safety Key

Parts Available

Keypad

Display

Cosmetic

Walk Belt

Drive Motor

Deck Drive Belt

Maintenance has been performed. SAFETY KEY - was broken on inspection and replaced during service. ASNZS3760, motor and drive system load tests were completed in August 2023 - repeat February 2024. COSMETIC condition is good - consider replacement within 4 years - budget $6,000 ea At the time of inspection, the treadmills are in safe working order.

SAFE

Drive Hub

Rowers

Console

Rollers

Guides

Power Pack

Cord Guides

Chain

Grips

Parts Available

Seat

Sprockets

Straps

Cosmetic

Drive Belt

Pivot Point

Frame

Drive Guides

BB Set

Parts Available

Controller

Ped. Plates

Cosmetic

Clutch

2,490 $ 99

lease

BIKE

lease

STRENGTH

4,990 $ 99 purchase

Pins

BB Set

Seat

Belt

Slides

Pedals

Parts Unavailable

Guides

Display

Straps

Cosmetic

when maintained by

HYGIENE

SUPPLIES

Wipes

Gym Wipes containing:: Benzalkonium / Chlorhexidine. At the time of inspection, there were appropriate wipes in the facility.

Spray

Equipment Spray containing:: Benzalkonium / Chlorhexidine. At the time of inspection, there was appropriate spray in the facility.

Gel

Hand Gel containing: minimum 70% alcohol. At the time of inspection, there was appropriate hand gel in the facility.

Fog

Fog containing:: Benzalkonium / Chlorhexidine. A Fog Service of the equipment has not been performed.

lease

2 YEAR

UNLIMITED WARRANTY

Maintenance has been performed. BELTS require replacement however parts are no longer available - consider replacement; budget $2,990. COSMETIC condition is good - consider replacement within 4 years - budget $3,000 ea At the time of inspection, the bike was in safe working order.

Hygiene

2,990 $ 99

purchase

Maintenance has been performed. POWER PACK was replaced and console calibrated in August 2023 - repeat in February 2024. COSMETIC condition is average - consider replacement within 3 years - budget $2,000 At the time of inspection, the bike was in safe working order.

Bikes

lease

purchase

Maintenance has been performed. CONSOLE - both consoles are faulty and require replacement - costs exceed $2,600 each - consider replacement. COSMETIC condition is good - consider replacement within 4 years - budget $5,000 At the time of inspection, the elliptical was in safe working order.

SAFE

1,990 $ 69 ELLIPTICAL

Console

SAFE

lease

ROWER

purchase

Ellipticals

Servo Motor

3,990 $ 99 purchase

Maintenance has been performed. COSMEITC condition is average - consider replacement within 3 years - budget $500 At the time of inspection, the strength is in safe working order.

Treadmill

02 02 02

The typical service interval of your industry is: quarterly (3 months)

Wipes

1,200 wipes

Gel

Fog

Spray 500ml

FOG

1300 496 967

clean. disinfect. sanitise.

375ml

Maintenance has been performed. At the time of inspection, there were adequate hygiene measures in the facility.

STATIONS

Service

199

Wall Station

399

Storage Station

199

Fog Service

HEALTH & WELLNESS

natural

health

NATUROPATHY & HERBAL MEDICINE

E D IT

Full Report

Hygiene has also become a focus point and the provision of sanitising products for the cleaning of equipment should be made available in the gym. To provide an adequate level of relevant supplies, it would be prudent to include a hand gel with at least 75 percent alcohol, antibacterial wipes containing benzalkonium chloride and an equipment sanitising spray one that that won’t damage the equipment plastics and upholstery. The added benefit of a hygiene station also

will be honoured in your facility. You do not want to have to run around if you need to make a warranty claim so a little extra effort up-front will ensure the process goes smoothly.

It’s typical to perform

After

ATMS

Reg. 50703

890 ROWER

690 BIKE

990

ELLIPTICAL

2,490 TREADMILL

690

STRENGTH

Quotations for repair and

Ben Bass 0403 969 946

replacement. If you would like to discuss your facility, please give me a call.

1300 496 967 MANAGEMENT

January 2024

TOURISM REPORT

A spectacular display of excellence from Sunshine Coast tourism operators Tourism operators from across the Sunshine Coast walked away with an impressive haul of awards at the annual Queensland Tourism Awards, held in Cairns last month. The Sunshine Coast contestants secured three gold, three silver, and three bronze awards. The Sunshine Coast winners were as follows: Double Gold Awards: Creative Tours, led by Josh Donohoe, secured double gold in the Tour and Transport Operators category and the Excellence in Food category. The recognition highlighted its pioneering efforts in showcasing the Sunshine Coast’s rich food and drink trails. Mr Donohoe also played a pivotal role in the innovative Queensland’s Sunshine Pantry program, which is championing the region’s agritourism attractions. Additionally, his dedication to promoting the region as Australia’s Craft Beer Capital also earned the Visit Sunshine Coast team a Silver Award for their marketing campaign. Gold Award:

Images supplied by Visit Sunshine Coast

RACV Noosa Resort, secured silver in the Self-Contained Accommodation category. Visit Sunshine Coast, earned silver in the Richard Power Award for Tourism Marketing and Campaigns for their campaign on “Australia’s Craft Beer Capital.” Bronze Awards: Tourism Noosa was awarded bronze in the Richard Power Award for Tourism Marketing and Campaigns for their “Find Your Inner Noosa Winter Campaign.”

Expressing his congratulations, Matt Stoeckel, CEO of Visit Sunshine Coast, emphasised the exceptional quality and professionalism of the Sunshine Coast’s tourism operators. He further applauded the boutique accommodation sector on the Sunshine Coast, highlighting the consistent recognition received by operators such as Narrows Escape Rainforest Retreat, Bli Bli Riverside Retreat, and Glass on Glasshouse.

Silver Awards:

Glass on Glasshouse secured bronze in the Hosted Accommodation category.

After a highly successful year, with the Sunshine Coast recording record domestic expenditure for the 2022 to 2023 period, these accolades serve as a perfect end to the year.

Bli Bli House Riverside Retreat was awarded silver in the Hosted Accommodation category.

Pelican Boat Hire clinched bronze in the Tourism Retail & Hire Services category.

Queensland Tourism Minister Stirling Hinchliffe also extended his congratulations to the

Narrows Escape Rainforest Retreat, clinched the gold award in the Hosted Accommodation category.

January 2024

Gold award winners from Queensland will now advance to the Qantas Australian Tourism Awards, scheduled to be held in the Northern Territory on Friday, March 15, 2024. Looking ahead, the Queensland Tourism Awards for the next year will take place at The Star in Brisbane, promising another exciting showcase of tourism excellence.

Creative Tours owner Josh Donohoe winner of two gold awards at the Queensland Tourism Awards

Narrows Escape Rainforest Retreat

award winners and finalists, acknowledging their contribution to creating world-class visitor experiences. He highlighted Queensland’s place as the nation’s favourite holiday destination, with a record $33.2 billion visitor economy, attributing it to the ingenuity and commitment of the state’s tourism operators.

TOURISM

Summer to unleash a $1.3 billion tourism boom on the Gold Coast The latest figures reveal Australia’s tourism mecca is poised for an extraordinary summer resurgence, in line with pre-pandemic levels. Experience Gold Coast CEO, John Warn emphasised that the surge is indicative of the region’s remarkable recovery in the face of global challenges. “Summer is traditionally our peak period for visitation and this year we anticipate the season will inject more than $1.3 billion into the local economy – on par with pre-pandemic levels – now that all markets are open,” Mr Warn said. “AEC modelling indicates that 42 percent of economic impact will be the result of interstate visitors compared to a quarter from international. It’s welcome news for our 10,000 tourism businesses that are ready to deliver memorable experiences for locals and visitors alike.

forget the return of China Southern Airlines and China Eastern Airlines just in time for the Lunar New Year, thanks to our partnerships through the Attracting Aviation Investment Fund.

Image courtesy of Experience Gold Coast

“At the same time, occupancy is heading through 70 percent, but we are still encouraging last-minute holidaymakers to jump onto booking sites now.”

and reconnect with nature in Heritage-listed rainforest.

Mr Warn said the booking window continues to remain shorter as holidaymakers consciously consider their options. He said: “Here in our holiday playground, you have the freedom to go with the flow and pick your pace. Leap into actionpacked adventures at thrilling attractions or slow right down

“Latest visitor figures show a steady increase in numbers to 12.6 million total visitors including record domestic visitors which highlights the Gold Coast’s allure as a sought-after destination whether travel is for leisure, business, education, or visiting friends and relatives. “We are one of the most connected destinations in Queensland right now through two airport gateways and let’s not

“The Gold Coast is the second most sought-after Australian destination for Chinese travellers behind Sydney, so that tells us we have a huge advantage to capitalise on now that the connectivity has been established.” As the Gold Coast readies itself for the radiant embrace of summer, it extends a warm invitation to travellers seeking a tapestry of experiences. Headline events set to descend across the city over coming months include: Sneakers Unboxed, Studio to Street, Australian Volleyball Schools Cup, The Star Gold Coast Magic Millions Carnival, the Australian Academy of Cinema and Television Arts Awards and the Gold Coast Open.

Sunshine Coast Airport and Bonza soar to new heights Last month, travellers onboard the first-ever direct service between the Top End and the Sunny Coast were welcomed with a breakfast taste sensation showcasing some of the region’s finest products and produce. There was no shortage of excitement as the new direct Darwin service touched down with twice-weekly flights set to connect the two holiday and leisure destinations for the first time. Darwin became the eleventh direct Bonza service from the Sunshine Coast, and the first direct commercial service from Sunshine Coast Airport to anywhere in the Northern Territory (NT) in the airport’s history. In the first twelve months, Bonza will have added more than 300,000 additional seats into the region. The new Darwin service will create more opportunities for travellers to experience the best the Sunshine Coast

Coast tourism industry as they welcome additional visitors.” Visit Sunshine Coast CEO Matt Stoeckel said the launch of Bonza’s Darwin service provided another amazing opportunity for the Sunshine Coast tourism industry.

and Noosa have to offer, while opening up new opportunities for locals to visit the NT. Sunshine Coast Airport CEO Chris Mills said: “Our partnership with Bonza has connected us to incredible destinations across Australia, and now the connection to Darwin opens a world of new opportunities. “We are extremely proud of our region, and the incredible entrepreneurs and businesses that make it special, which is why we wanted to welcome travellers with a breakfast to showcase what the region has to offer.

“Our focus at Sunshine Coast Airport is to increase visitation to our region and give locals more choice and flexibility to connect them with family, friends and loved ones.” Bonza CEO Tim Jordan joined customers onboard the inaugural flight and said: “We know the Top End is often a bucket list destination and by introducing more affordable flights from $149 per person (one way), we’re making it easier for Aussies to explore more of their beautiful big backyard. Our latest route is also more good news for the Sunshine

TOURISM

“It’s the first-time folks from Darwin have been able to travel directly to the Sunshine Coast, and in just over four hours they can be here to enjoy a croc-free swim or explore our incredible hinterland and worldclass attractions,” he said. Tourism Noosa CEO Sharon Raguse also offered a warm welcome to the first visitors from Darwin. “It is great news for our region to have the addition of the Darwin to Sunshine Coast flights from Bonza. Darwin will become an important link to our region offering new opportunities for not only Northern Territory travellers but also providing easier connectivity and access for international visitors to visit our region,’ she said. January 2024

NICHE TRAVEL

Embark on a journey of a lifetime: Discovering hidden gems

Image courtesy of Interline Travel

By Stephen West, Interline Travel

If the travel bug has bitten you and wanderlust is coursing through your veins, then get ready for a journey of a lifetime. Our planet is a treasure trove of hidden gems waiting to be uncovered, and we’ve curated an exclusive guide to ignite your passion for exploration.

Unveiling nature’s masterpieces Picture yourself standing on the edge of the world, with nothing but the vast expanse of azure waters stretching before you.

January 2024

The Amalfi Coast in Italy beckons with its dramatic cliff s, charming villages, and delectable cuisine that will tantalise your taste buds. This picturesque destination is just one of nature’s masterpieces that await your discovery.

a gateway to this celestial spectacle. Imagine a night sky painted with hues of green and purple, creating a mesmerising display that will etch itself into your memory forever. It’s a celestial ballet that only the fortunate few get to witness.

Think Azamara, Celebrity and Silversea.

Think Silversea, Seabourn and Hurtigruten.

Immerse yourself in cultural riches

Embrace serenity in the Far East

For those who crave a cultural odyssey, the bustling streets of Marrakesh, Morocco, promise an intoxicating blend of colours, scents, and sounds. Lose yourself in the labyrinthine Souks, where every alley holds a hidden treasure. From the vibrant textiles to the tantalizing aroma of exotic spices, Marrakesh is a feast for the senses that will leave an indelible mark on your travel memoirs.

For those seeking tranquillity and spiritual awakening, the ancient temples of Kyoto, Japan, offer a serene escape. Surrounded by cherry blossoms in spring or vibrant foliage in autumn, these sacred sites invite you to experience a moment of reflection and connection with the profound beauty of life. Kyoto is a haven for those who seek solace in the midst of nature’s splendour.

Think Cunard and Regent.

Think Princess, Silversea and Seabourn.

Chase the Northern Lights

Navigate the Amazon’s mysteries

If the cosmic wonders beckon you, venture into the Arctic Circle to witness the ethereal dance of the Northern Lights. Tromsø, Norway, stands as

Embark on an expedition into the heart of the Amazon rainforest, where biodiversity thrives, and mysteries abound. Glide along the river, listening

TOURISM

to the symphony of exotic birds and elusive creatures. The Amazon is a living, breathing entity that invites you to witness its secrets, from vibrant flora to elusive wildlife, in a journey that immerses you in the pulse of the planet. Think Silversea and Seabourn expedition.

Seize the adventure Whether you crave the thrill of adventure, the serenity of nature, or the richness of diverse cultures, the world is your playground. So, pack your bags, open your mind, and let the spirit of exploration guide you to destinations that promise to redefine your idea of travel. Unearth the hidden gems, create memories that linger like the sweetest melodies, and let your journey be a testament to the beauty that awaits those with a heart full of wanderlust. Choose an agent that can match your needs with the correct cruise line, there are numerous lines to choose from and some to avoid depending on your travel needs. Believe your adventure begins now! Think Cruise.

EVENTS

ARAMA’s Management Rights Industry Training Program – MRITP Last month one of our team, Joe Clarke attended ARAMA’s one day, fully interactive training program, aimed at both beginners and experienced management rights business owners, held at Riverside Hotel Brisbane. For Joe it was an opportunity to learn more about the business of management rights to assist in his role at Resort News, AccomNews and AccomProperties. The day included sessions with an impressive line-up of top industry experts led by ARAMA CEO, Trevor Rawnsley, who detailed the important work of ARAMA. Mahoneys law firm gave an overview of the main management rights legislation.

Reflecting on the day, Joe said: “It was excellent. Although I’ve worked on the peripheral of the management rights industry for over a year, this training has expanded my knowledge and enhanced my perspective. The valuable information was effectively condensed into one day and there was plenty of time for questions and discussion. Everyone was very knowledgeable; I learned a lot.

The Office of Fair Trading shared key information for running the letting part of the business. Office of the Commissioner for Body Corporate and Community Management explained its role and what the Office can and can’t help with. CTS Management explained

what a Body Corporate Manager does and highlighted the importance of good relationships and open communication. Finally, on behalf of Mike O’Farrell, Director at MLR Services, Trevor Rawnsley revealed “The 10 commandments” from a caretaker’s perspective.

“Personally, I liked how each part of the sector was explained individually. The industry can be confusing, with its wide range of titles and roles, contracts and agreements, and numerous laws and legislation. It was gold to hear the experts clearly explain their roles, and how they interact with each other. “It’s elevated my knowledge of the industry and will assist me in my role going forward.”

Mike Phipps Finance Christmas bash

The Team at Mike Phipps Finance recently welcomed clients and supporters to a nauticalthemed Christmas celebration at the Noosa Boathouse. A who’s who of the management rights and accommodation industry got into the spirit of the occasion and a great time was had by all. Some are still recovering!

EVENTS

January 2024

PRET Awards Night and charity dinner donations breaks record

The third PRET Australia Awards Night took off from the Royal International Convention Centre in Brisbane, on November 25, 2023, and surpassed previous fundraising targets. The theme for this year’s event was “Around the World”. When guests travelled up the escalator to the second floor, they found that the entry had been transformed into the airport check-in counter of EVA Air. The duty-free counter area of TF International was also a feature, as well as an airline

January 2024

VIP Lounge offering delicacies and snacks from all over the world! As the ground staff made announcements to urge boarding, guests walked into the boarding gate and took their seats at the first class, business class, premium economy class and economy class tables. Event organiser, Paul Shih, said: “This flight was probably the only one in the world with more business class seats than economy class! There were 71 tables, including 14 first-class tables and 32 business-class tables. Business-class tables were sold out to sponsors as soon as they were launched. Many companies had to

purchase premium-class or economy-class tables instead to guarantee their place, and have expressed interest in securing a higher-level sponsorship early next time.” The event kicked off with inflight entertainment - an explosive performance by Uncle Club Band sponsored by hotel operator Mr Michael Chen. The band sang classic songs from various countries reflecting the evening’s theme, winning warm applause from all passengers. Next, the airline hosts for the evening - Ocean, Angel, Alex and Sirlene - took to the stage. All four have hosted the event

EVENTS

for the past three years, and many guests who had attended in previous years observed that the young hosts had grown up, from children to teenagers. They stood on stage in captain’s uniforms and flight attendant’s uniforms, and demonstrated the safety instructions for the flight. The performance allowed guests to see the improvements of these teenage Emcees aged between 14 and 16 years. Lord Mayor Adrian Schrinner and Lady Mayoress Nina Schrinner took to the stage on behalf of Lord Mayor’s Charitable Foundation, and thanked everyone for their support and dedication to charity. Ms Fu from

YFG Shopping Centres stepped on stage to donate $20,000 on behalf of the company. Mrs Lisa Smith, the marketing director, presented a thank-you trophy to the mayor and his wife on behalf of Mrs Yuan Fu, who has been doing charity through the Loving Care Group for more than 20 years and on behalf of Mrs Fu, Mrs Smith also congratulated Paul Shih for winning the honour of being one of Taiwan’s top ten outstanding overseas young people this year. Trudy Crooks, director of ResortBrokers, and Ms Shi Huang Liying, the 92-year-old

grandma of Paul Shih who flew in from Taiwan, also came on stage to donate big cheques to the Mayor’s Charitable Foundation. Then, Paul Shih introduced this year’s new Resort News Five-Star Property Manager Award. The winners are all outstanding property managers. This award was announced and presented by Mandy Clarke, editor-in-chief of Resort News, the professional management and letting rights magazine. A new charity, FareShare, was added to this year’s dinner. The organisation specialises in saving produce from supermarkets and

making delicious meal packs for charitable organisations to deliver to those who need them most. FareShare provides millions of meals every year, and with homelessness in our community increasing, support for their work is critical. All proceeds from selling raffle tickets at the dinner were donated to FareShare. Ms Barbara Chuang of BB Group and Jinding Group each donated $10,000, giving FareShare a total donation of more than $35,251. Chairman Carl Wu presented APMA’s Five-Star Onsite Manager Awards to outstanding

EVENTS

onsite managers in recognition of their exceptional performance in serving landlords and tenants and in social responsibility. The Outstanding Employee Award, co-organised by the Australian Taiwan Chamber of Commerce in Queensland, was presented to employees on stage by the bosses to thank them for their contributions to the company, allowing the company to give back to society! With the support of employees and clients, Jason Fu and Penny Huyan of GoldenWater Finance donated $10,000 to the Mater Foundation for the third year.

January 2024

Mr Michael Song from the newly participating diamondlevel sponsor Cllix Hotels & Apartments has supported the bidding in previous years. This year, he donated $10,000, and bought some holiday accommodation in Noosa during the live auction. MIA Director Anita Huang and Mahoneys also presented big cheques and participated in the bidding. Mater Hospital auctioned a medical simulation training centre experience for eight people and a French lunch. After

January 2024

competition from many parties, Lennon Lin and new immigrant Mr Hao Chao raised their bids by more than $10,000. In the end, they decided to donate $12,000 each. Mater Foundation raised more than $76,715 to purchase a transport cot for sick babies. Royal Brisbane and Women’s Hospital Foundation received a second-year donation of $10,000 from REDY Group, with a big cheque presented by Ms Silvia Liu. FutureX Group, 28 Property, Ray White Forest Lake and Grace Education also came on stage to

present substantial donations. Among them, Grace Yu and Sharon Chen, the honorary ambassadors of the Mayor’s Charitable Foundation, chose to donate to RBWH because Ms Yu’s mother’s cancer surgery was successfully undertaken by RBWH. In the end, $53,751 was raised for the hospital. The annual dragon fruit charity sale initiated by Royac Farm has become a significant event for the Chinese community in Queensland. This year, under the sponsorship of William Yan,

EVENTS

President of the Australia-China Investment and Trade Promotion Association, the volunteers wore uniforms and aprons for next year’s charity sale and went on stage to donate two cheques of $6000 each to two hospitals. Prepared to continue the charity sale with Paul Shih next year, these volunteers also came again to help with the Awards Night. Former mayor Graham Quirk and Paul Shih jointly acted as auctioneers for this year’s live auction. Paul Shih’s Hainanese chicken rice and ROBAM

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steam oven were bought at a high price by Jacky Lee of Glamourous Wok. Paul Shih’s family will have to rack their brains again to prepare new dishes to entertain. Paul Shih also sponsored a one-day Porsche driving class experience. Bobo Qi from Property Bridge paid $5500 for four people to experience the training of driving eight Porsches.Bobo’s husband, Mr Darren Brent, is a professional racing driver.

January 2024

No wonder she defeated many competitors to buy this item! The Top Agent Award is the highlight every year. There were more than 80 nominations this year, and only 14 real estate agents became finalists. The award was presented by Emily Huang, Managing Director of Queensland Property Weekly. Four of the final five winners are first-time winners: Jessie Shi of ResortBrokers, John Heng of Ray White Robertson, Jacky Niu of BrisVegas Property

Group and Jun Yang of Jun International Realtors. Leo Liu of NGU Real Estate was ranked among the top five agents for the third consecutive year. Congratulations to these outstanding real estate agents for receiving awards from Jade Harley the founder of PRET Australia! EVA Air’s grand prize of roundtrip air tickets to any Asian destination was won by Jack Guan! Jacky Niu won the roundtrip ticket to Taipei on China

EVENTS

Airlines sponsored by Paul Shih. Finally, Paul Shih announced that the first year of Awards Night raised more than $70,000 with the support of 350 guests at W Hotel, the second year raised more than $140,000 with the contribution of more than 700 guests at Brisbane City Hall, and this year’s event raised a total of $210,507 setting a new record! Thank you so much to all our guests for their overwhelming support.

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First Build-to-Rent venture by Minor Hotels & Argentum Group Pioneering Minor Hotels’ foray into the Build to Rent (BTR) market, the hotel group announced its first BTR venture with the community-focused development, Citiscape by MINT Residential, in Rockdale, Sydney. This is also a first for Argentum Group, with several other projects under review focusing on BTR, affordable housing and build-to-lease residential. Minor’s full-service property arm, MINT Residential, will provide property management for the almost $20 million Rockdale development which offers purpose-built highquality studio apartments with world-class communal facilities as an attractive alternative to the traditional apartment rental agreement.

Citiscape by MINT Residential

initiatives will be facilitated by the onsite management, allowing for opportunities to bring people together.

Citiscape by MINT Residential is positioned as the pinnacle of convenience, comfort, and contemporary living in the heart of Rockdale with a collection of furnished studio apartments, offering residents an opportunity to experience a lifestyle like no other, where every detail has been meticulously curated to offering the ultimate living experience. Craig Hooley, Chief Operating Officer for Minor Hotels Australia, and New Zealand said: “Given our extensive experience in the management of over 60 hotels across Australia and New Zealand, and the current strong demand for quality rental housing within Australia,

January 2024

“More than simply apartment buildings, Citiscape by MINT Residential will offer a true sense of community where residents will make strong connections with their neighbours,” explained Hooley.

we believe entering the BTR space is the right move.” Citiscape by MINT Residential will offer a welcoming lobby creating a community focal point for residents and their guests, a stylish open-air

rooftop and entertainment area commanding dramatic city skyline and coastline views, as well as a residents’ community room providing an inviting haven in which to work, study or collaborate. Regular in-house activities and

DEVELOPMENTS

Located only 50m from Rockdale Train Station with a 20-minute commute to both Sydney CBD and Sydney’s Domestic and International Airports by train and the calm bays of Sydney’s south-eastern beaches only minutes away, Citiscape by MINT Residential is ideally located for those after a vibrant community base within close proximity to the city.

Darwin Airport Resort opens

Novotel & Mercure Darwin Airport Resort

Australia’s first airport resort opened on December 5, following the complete reimagination and integration of two existing airport hotels at Darwin Airport. The unveiling of the Novotel & Mercure Darwin Airport Resort followed a $30 million investment by the Airport Development Group (ADG), which also owns the adjacent Darwin Airport. ADG’s visionary project has produced a remarkable

transformation of the hotels, with the progressive refurbishment of existing rooms and the creation of new pool villas, suites, and bungalows perfectly capturing Darwin’s tropical environment. Previously, the two hotels had separate receptions, but now a combined reception area has been opened, along with a new 60-metre, one million litre swimming pool. The newly launched resort will position itself as a premium destination venue for leisure visitors, business travellers, and conference groups to the

Northern Territory’s Top End. The provision of world-class resort accommodation is a key component of ADG’s Darwin International Airport 2023 Master Plan, which focuses on the significant infrastructure required to support growth in passenger numbers to between 3.7 and 5.5 million annually by 2043. It was launched at a time of expansion of direct services into Darwin Airport. The latest airline to fly into Darwin Airport is Australian low-cost carrier, Bonza, which has just commenced flights from the Gold Coast and Sunshine Coast.

The resort is located on the lands of the Larrakia Nation, the traditional custodians of the greater Darwin area. Indigenous engagement is an integral component of the hotel’s redesign. A feature of the resort is the diversity of rooms available to guests as part of the 423-room inventory. New-look Novotel and Mercure hotel rooms boast sleek interior designs, and guests can also choose family suites, freestanding bungalows, and new 5-star tropical villas with plunge pools.

Basq House: New boutique hotel for Byron Bay Located in idyllic Byron Bay, and on Bundjalung Country, Basq House is a new 32-room boutique hotel set to open in Autumn 2024. Basq House will offer guests an oasis of calm and sophistication, and a hotel from where they can explore the hinterland, vibrant restaurant scene, and renowned beach culture. Designed much like a house, and with a distinct indoor-outdoor aesthetic, the floor plan of the hotel consists of a reception area, that doubles as a bar, a generous, speakeasystyle lounge room, that flows

through to the outdoors, and a library, that will feature bespoke floor-to-ceiling bookcases. Landscaped greenery will frame the central swimming pool, to create a welcoming sanctuary with custom cabanas and sun loungers. The property will be operated by locally based Jeremy & Jones, better known for their involvement in launching Elements of Byron resort. Jeremy and Jones Director, David Jones heads Destination Byron and remains bullish on the region’s long-term attractiveness within the domestic travel market.

DEVELOPMENTS

Basq House

January 2024

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SANCTUARY BEACH RESORT

Golf pro having a ball at Sanctuary Beach

David Ekberg with son Adam

By Grantlee Kieza, Industry Reporter

Sanctuary Beach Resort in family friendly Currrumbin.

winner. Now David has another star at Sanctuary Beach.

David Ekberg teed off into the world of management rights five years ago and the former golf pro has come a fair way since then.

He was a hot shot on the fairways and greens, once shooting 65 in a round on the Canary Islands and recording a 67 over the 18 holes of a Pro-Am on the attractive and testing layout of Massey Park at Concord in Sydney.

“We sold Beaches on Wave after doing pretty well through the virus when a lot of other properties didn’t,” David said.

David, who helped golf become a big hit in Warsaw, the capital city of Poland, is making one massive drive after another to put in another great round at his second management rights property, the lovely

He doesn’t get to play as much golf as he used to, but he and his wife Eva made their first management rights property Beaches on Wave at Mermaid Beach a real

“We had a few months off, basically deciding what we’d do and then Sanctuary Beach came up for sale in Currumbin, so we decided to take it. “We saw there were a few things that could be improved, business wise, and the location was ideal for us with our nine-year-old son Adam. The property is on the

beach, it’s a family place and well away from the hustle and bustle of the coast’s busiest areas.” David is running the building with an onsite manager, meaning that he, Eva and Adam can live offsite. The family have just bought a home a few doors down from the property. There are 45 units at the Sanctuary Beach Resort and David and Eva have a mixture of permanent and holiday letting, with 18 apartments in the holiday letting pool, and four permanent residents managed by them. David says the experience he gained from running his previous property was an education. He and his wife settled at Sanctuary Beach on Feb 1, 2023, and since then have increased their occupancy rates and owners returns. “Everything’s gone up so that’s a good sign,” he said. “We had a break of about five or six months between selling Beaches on Wave and buying at Sanctuary Beach, and in that time, I was actually helping out at a few different resorts. I saw that service is so important. There is a massive difference between the

January 2024

PROFILE

standard of some properties and the way they run them. “I always say if people are going to spend a lot of money on securing a management rights property, they should spend just a few more thousand dollars and get the best advice they can.” David said it’s a huge handicap for any resident manager if they do not take advantage of ARAMA’s advice. “You can tell straight away which managers have gone to the ARAMA training courses and which ones haven’t. Believe me, they are money well spent and really make a huge difference.

ARAMA courses are money well spent and really make a huge difference

“When we bought into Beaches on Wave, he helped us sort out a lot of things early on to help it run smoothly.” He said one of the things he learned at his previous

property was how to price the product appropriately. “I look at every room and put myself in the position of the guest and ask myself would I be happy with that room when I

“I did an ARAMA course when I started in management rights and went to one of their training days. “I asked the CEO of ARAMA, Trevor Rawnsley about getting help in the business and he recommended Mike O’Farrell. Mike is a board member on ARAMA and has a big complex called Riverside in Brisbane.

check in? Would I be happy with the standard of the furniture and everything else in the room? “One of the reasons why I chose this resort was because the standard of the rooms is a little bit higher than the previous property and that makes it easier to market them. A lot of the rooms are updated and renovated whereas the previous property hadn’t had much renovation at all. “By getting the pricing right you can fill up all the bookings and that’s very important. We get a lot of repeat bookings and that is great for the owners and for our business. “The reviews here are 8.9 on booking.com which is impressive and another reason why I took this place. Obviously with those sorts of reviews the standard must remain high.

“Mike gave us advice from the beginning, even making sure we got the right complex. I looked at a few properties that I thought would be good, but he said ‘no’ to them for various reasons.

PROFILE

January 2024

“The owners and committee at Sanctuary Beach Resort are very knowledgeable and provide many great ideas along with support to keep the building well maintained. “My wife has a different job now because there’s another manager, Peter, who runs the property alongside me. He’s been here quite a long time, lives onsite and knows everything about every unit in the whole building. He basically works his bum off every day. He’s a big asset and his knowledge, abilities and hard work was another factor in us buying the business.”

bedroom apartments in a languid tropical setting. Every unit is unique and individually owned. The three-bedroom beachfront apartment has a sensational view of the Pacific Ocean and is ideal for large families, reunions, or groups. There is a “parents retreat” on the upper level, consisting entirely of a spacious main bedroom, large ensuite and balcony. Two extra bedrooms are located on the lower level with a second bathroom, fully equipped kitchen, laundry and balcony.

As well as thousands of miles of blue ocean at the front of the property, Sanctuary Beach also has a resort pool and spa. All the apartments are fully self-contained with quality appliances and free wifi. There is also a full-sized tennis court with complimentary equipment available, a barbecue area with seating for 20 people, and secure underground parking.

at Griffith University on the Gold Coast. He turned pro, working at Royal Pines for six months. That was in the late 1990s and then he got the travel bug.

David grew up at Seymour, Victoria and then completed a Bachelor of Business in Professional Golf Management

“I met Eva in Poland, too, and I ended up staying in the country for 19 years,” David said. “We built up a really good business.”

The Sanctuary Beach Resort provides absolute beachfront accommodation at the glorious and quiet southern end of the Gold Coast. There are no roads to cross to hit the sand and waves. Currumbin is one of Australia’s most stunning beaches and just a short walk from Currumbin Alley, the popular surf break. Nearby the resort is the world-famous Currumbin Wildlife Sanctuary, the Vikings Surf Life Saving Club, Elephant Rock, and a bevy of beautiful local restaurants. The property has beautifully appointed two and three-

January 2024

PROFILE

He had planned to spend a year in Europe. In Poland he found that golf was a new sport that was growing in popularity even though there was only one course in Warsaw. He became the golf pro there for five years.

David ran a golf academy where he coached players, he became the representative for Ping clubs in Poland, and he and Eva also organised golfing holidays.

David was always talking to the managers of the apartments where they stayed, and the business model seemed attractive.

Then, he and Eva decided on an Australian sea change. “The golf season in Europe generally lasts for nine months of the year. When winter comes it’s summer in Australia,” David said.

When the couple bought Beaches on Wave, they were already looking for another, bigger property.

“We’d come back to the Gold Coast every year and spend two weeks in Coolangatta.” The couple had no experience in management rights but

getting good experience at all aspects of the business.” David said he had great faith in the business of management rights and said he expected the industry to grow stronger over time despite its detractors.

“That’s the normal progression in this industry,” David said. “You buy one and then move up to a bigger one. “At Beaches on Wave we were doing everything, except cleaning the rooms. We were

“With the current housing crisis more people are looking for somewhere safe and secure to live,” he said. “We are going to see more high-rise apartment blocks and the best way to run those properties is with a resident manager.” He says he’s delighted to have

a resident manager helping him run Sanctuary Beach and that not only does he want to spend more time with his son in the beautiful waters of Currumbin, but he might also get some time to pursue another of his great loves. “Sanctuary Beach is a beautiful property and people love coming here,” he said. “With Pete always onsite it’s really well run, and you never know. If I get enough time, I might even get to play some golf again.”

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