Resort News, April 2024

For

Fully Compliant Trust Accounting

Accommodation software designed for your business

HiSITE: Our very own Channel Manager for all your distribution requirements

Industry-leading, powerful and insightful reporting

Integrated Owners Portal to keep your owners happy Everything your business needs. Contact the team at HiRUM today!

Customisable to suit your individual owner agreements

The legal stuff...

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

Advertising Conditions

The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production defi ciency, 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 sta , is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profi t loss) claimed to have occurred as the result of anything contained within this publication, to the extent permi ed by law.

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 confi dence, is not defamatory, libellous or unlawful,

other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties.

Penguins, interesting people and inspiring stories

Welcome to the April edition of Resort News!

I continue to soak up the eclectic charm of Oamaru, in New Zealand’s South Island, so before diving back into the hustle and bustle of Brisbane, let me paint you a picture of this hidden gem. Picture Victorian-garbed eccentrics mingling with Steampunk enthusiasts, while artists, writers, beer makers, and musicians add their colourful strokes to the canvas of this unique town. With historic buildings whispering tales of yesteryears, a picturesque but shabby wharf boasting creaky wooden boats bobbing in the turquoise ocean, and cute penguins casually crossing the road as if they own the place, Oamaru is a feast for the senses. And let’s not forget the wild seals, who aren’t shy about stealing

the spotlight. Did I mention the festivals? I recently lost myself in a wild weekend of free end-to-end jazz, blues, wine, beer, and great food. Sold on it yet? Despite its undeniable charm and potential as a tourism hotspot, many locals prefer to keep Oamaru under the radar (and would frown at this public endorsement). But hey, that’s part of its allure, right? Although I must admit, I don’t own any of the Oamaru

motels or hotels with “Vacancy” signs! But less about me and more about this edition.

You will be saddened to learn about the struggles of MLR operators and residents in FNQ. On page 6 we report on the water shortage, ironically caused by what was the wettest tropical cyclone in Australian history. And people are taking action.

Douglas Shire resident Kellie Lawler has started a Change. org petition, saying she is “witnessing first-hand the dire state of our water supply” and calling on the state government and council to “prioritise an urgent and sustainable solution - a pipeline from Quaid’s dam.”

Following on from last month’s exploration of environmental government initiatives, we shine a spotlight on electric vehicles and their place in schemes. On page 26, Angelique Mentis,

Director of thatsMYspot.com. au explains how to be EVready in your strata building.

On a lighter note, Grantlee Kieza talks with Michael Philpott , the owner of MR Sales and Tourism Brokers. After more than 40 years in the real estate industry, it’s very good to hear he is not slowing down; instead, he is busier than ever!

And welcome to our new columnist on strata mattersRoland Franz, General Manager, Body Corporate Headquarters, Strata Consulting Services (Qld).

Finally, we catch up with onsite managers Mei and Mani Taare, who swapped their Wellington, New Zealand lives for a management rights adventure at Litt le Cove Resort, Currumbin.

Enjoy this edition.

Warmest regards, Mandy.

Experts in management rights sales

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

mrsales.com.au | 1300 928 556

Working together, working for you

Experts in accommodation sales

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

Buying or selling?

Mandy Clarke, Editor editor@accomnews.com.au

Water shortage plunges Port Douglas into dry spell

By Grantlee Kieza, Industry Reporter

There is a dangerous lack of water in what is traditionally the wettest part of Australia after landslides triggered by Tropical Cyclone Jasper tainted the flood-hit community’s reservoirs. It has created a $150 million repair bill and plunged the local tourism industry into crisis. For accommodation operators in the region, the natural disaster has come just as their industry was recovering from the impacts of the pandemic.

The Douglas Shire region north of Cairns is still counting the cost of Jasper three months after it wreaked havoc.

Landslides have cut roads, with estimates that 10,000 cubic metres of dirt can still come crashing down at any time.

Both filtration plants servicing the shire need to be replaced, putting the community at risk of a lengthy water shortage, and causing chaos for the tourism sector.

“The amount of big landslides that landed into our water system, the water has actually changed its chemical composition,” Douglas Shire Mayor Michael Kerr told AAP

It’s a case of water, water everywhere and not a drop to drink.

Resident managers have been told to have large bottles of water sitting in their fridges because the shire cannot guarantee water supply.

“It is no longer the same water we used to have,” Mayor Kerr said.

“Both our filtration plants are no longer fit for purpose. The figure we have been given to get our water back up to a perfect solution is around the $150 million mark.”

Since Jasper hit, filters on the shire’s water treatment plants block quickly and the frequent rain in the Douglas Shire only makes it worse.

Mr Kerr said there was about two days’ worth of water supply in the reservoirs at Port Douglas and Wonga.

“When the rain falls the water speed intensifies, starts stirring up the debris in the water and by the time we get to the intake it is quite sludgy,” he said.

“The plant can’t process it so we have to turn the plant off, and rely on the small reservoirs we have got.

“If we have a long period of rain ... and the plant is offline for more than two days that’s when you start running out of water.”

Mr Kerr said the shire needed to not only replace its two filtration systems but add backup tanks.

“The whole package of getting everything done to ensure we have sustainable water will take a couple of years,” he said.

Bryce Tozer, the Port Douglas Branch president of ARAMA (Australian Resident Accommodation Managers Association) says the shire is in desperate need and is writing angry letters to politicians demanding action.

He blames political procrastination over water security for the crisis in the north.

Mr Tozer, the Manager of Cayman Villas Resort in Port Douglas, says in the near future Douglas Shire will need around 15 megalitres a day of water – and says the solution lies on a proposed pipeline between Quaid’s Dam – also known as Lake Mitchell Dam in neighbouring Mareeba Shire – and Douglas Shire.

“Quaid’s Dam is the solution,” he says.

“All surface water derived from the Mitchell River is controlled by the Queensland State Government, pipelines are constantly being laid throughout neighbouring council areas to help in-need towns and shires, I think we are now in

a state of desperate need.

“The solution is sitting idle 35km to our west, a gravity-fed pipeline to the tanks at Craiglie and a new purpose-built filtration plant would future-proof the Shire, and aid in the recovery of Rex Creek. All we need now is someone to listen and act, not procrastinate for the next 10 years!”

Mr Tozer said three of the threebedroom villas at his property suffered significant structural damage from Jasper’s driving winds and rain, with collapsed ceilings and floor tiles causing significant water damage.

Before the cyclone, Cayman Villas had an 80 percent occupancy rate for December but that was quickly slashed to 15 percent as tourists cancelled holidays.

Mr Tozer is urging Douglas Shire residents to sign a petition addressed to both the state’s Natural Resources Department and the council to make the proposed pipeline a reality.

The huge Quaid’s dam is not currently used as a water resource but is estimated by the State Government to hold at least 129,000 megalitres of potential supply.

Douglas Shire resident Kellie Lawler has started a change. org petition, saying she is “witnessing first-hand the dire state of our water supply,” and

calling on the state government and council to “prioritise an urgent and sustainable solutiona pipeline from Quaid’s dam.”

Ms Lawler says in the petition that the water supply situation in Douglas Shire “is so severe that we are on the brink of a water crisis with the threat of water supplies being completely cut during the peak tourist season.”

Mr Tozer said “virtually every other shire or town in Australia that has water issues has a pipeline supplying water from the nearest dam.

“The Queensland Government boasts of its desire to construct pipelines to vulnerable and water deprived communities … It appears to have no problem excavating a pushbike track through the forests between Cairns and Port Douglas at a cost of between $40 to 50 million.”

Several accommodation providers have had to turn prospective guests away because of the water shortage.

Occupancies in North Queensland properties have dropped from mid-70 percent down to 30 percent, with

millions of dollars of revenue washed away in the water crisis during what is traditionally a busy time of year.

ARAMA CEO Trevor Rawnsley is encouraging any of the association’s members to reach out for support if needed, and to make use of provisions such as the free mental health assistance program ARAMA A-MAP.

Ironically the water shortage in the north has been caused by what was the wettest tropical cyclone in Australian history.

In the immediate aftermath of Jasper, the Douglas Shire

had to switch off water treatment plants because of all the debris and large rocks washing into them from the landslides. It meant it was unable to fill reservoirs.

The reservoir at Port Douglas was down to 12 percent capacity, while another reservoir at nearby Craiglie was as low as seven percent.

Two weeks after Jasper hit, residents were told there had been a failure at the Mossman Water Treatment Plant.

“Douglas Shire Council urges all residents, businesses and visitors to refrain from

water use immediately,” the council warned.

Residents were urged to use non-potable water for hygiene purposes, and to use cooled boiled water for drinking, cooking, washing raw foods and dishes, making ice and cleaning teeth.

The council provided bott led drinking water, but it was limited to collecting one 2-litre bott le of water per person.

Engineers are still assessing the risk posed by a Thornton Range landslide which has cut the main tourist road.

Damian Quinn

© David Clode on Unsplash.com

What are my duties?

By Trevor Rawnsley, CEO, ARAMA

When the descriptions of duties are open to interpretation, they are also open to dispute

Open interpretations of duties often lead to disputes.

Some of the most contentious issues in Management and Letting Rights (MLR), involve disputes over the duties of resident managers especially when acting in the role of a caretaking service provider.

A very smart lawyer once said to me: “If a committee has one idea about duties and the service provider another, inevitably the area in between the two, will be filled with conflict. This is great for a lawyer but disastrous for the service provider.”

At ARAMA we get many questions about whether resident managers have to perform specific tasks — whether they have to scale heights to trim hedges or change lightbulbs, whether they have to work on Sundays, and whether they have to open the pool by 7 am.

Believe it or not, some managers don’t know, but they must. It’s their job description and what they are getting paid to do.

Some of the issues are solved by common sense. Others aren’t so simple.

My reply is always: “What does your Caretaking Service Agreement say?”

Recently, I saw a manager trying to trim 100 metres of hedge that was over two metres high while he was standing with one foot on the seat of a ride-on mower and the other foot on the steering wheel. Both dangerous and risky.

Could this task be made safe?

And is this part of his caretaking duties anyway?

Nothing makes people in a managed complex see red more than the grey areas of the caretaking service agreement.

Usually, disputes revolve around vague wording in contracts – things such as, “the manager must maintain the common areas to a high standard” or “the manager must keep the grounds clean and maintained as required”. Or my personal favourite, “The complex must be kept to a first-class standard” or even better, “A Gold Star Standard”. What do those clauses mean? That, of course, depends on who you are asking.

The caretaking service agreement is about maintaining, cleaning, and caring for the common area. But what about the verge between the scheme and the footpath that is not included in any caretaking service agreement because it’s not part of the common area?

But service agreement because it’s of ©

All good managers maintain that area even when it is not in the agreement and they are not being paid for this work.

If you’ve got a house you mow the footpath because if you don’t the grass gets too high and the property looks like you’re living in a dump.

If you don’t mow the verge, it reflects badly on your caretaking role and your business.

Ideally, every one of the manager’s duties should be fully contained in the caretaking service agreement and people coming into the industry should ensure that their agreement has as much detail and specificity regarding their duties as possible.

If you look at the basics of management rights — a resident manager is buying a caretaking service agreement that provides remuneration and a term. Along with that, they’re also buying real estate to live or operate in and cash flow from the letting business, but the body corporate doesn’t care about

Adobe Stockstock.adobe.com

the real estate or the letting business, they care about the caretaking and this is where 99 percent of the disputes lie.

If you’re buying a caretaking agreement that’s a dud, roughly one-third of your business is a dud.

Some committees use the term “inferred duties” which is a really dangerous word to use.

I have no idea how somebody could “infer” that there’s a duty, not specified in the agreement, and expect everybody to understand it at the same level. In those situations, it’s as though managers are expected to guess what’s required. It’s not always possible to clean up an agreement from the outset. But it’s a good place to start. It’s a good idea to have the agreement reviewed and perhaps altered before signing. If the committee says “no” and they’re planning to run it down, then that’s a good reason for a potential buyer to rethink.

Many existing agreements are not very specific, these are referred to as “generic agreements” and as disputes arise, both parties should seek to have variations made and to include more specificity.

Daily/weekly/monthly/quarterly/ yearly tasks should be set and agreed on. Schedules should be created, and completion reports or exception reports should be produced.

Time and motion experts such as Danny Little and Barry Turner work with schemes to create specificity in new agreements, so it’s easy to understand what a manager’s duties actually are. They can also act as independent advisors when there are disputes over existing contracts that have vague wording, and they try to install variations to the original agreements.

Most caretaking service agreements include some statement that work required at the complex could be reasonably carried out by an unskilled person.

That’s an important issue when it comes to working at heights or undertaking work that requires specialised equipment.

When working at heights — trimming trees or whatever — you might need specialised safety equipment and special training. You might even need

Some of the issues are solved by common sense. Others aren’t so simple.

a special licence to work with that equipment. Specialised work is not usually included in a caretaking service agreement. There are organisations out there who specialise in working at heights.

The caretaking service provider might say: “The agreement says I have to trim that hedge which is now three metres tall but when that agreement was written it was only a metre tall.”

When the agreement was created the hedge could be trimmed safely with a hedge trimmer while standing with both feet on solid ground. But when you need to climb a ladder, or even worse — a chair or a ride-on mower — things get dangerous.

The body corporate should not instruct anyone to work in an unsafe environment, and if you can’t trim something safely then you need to engage a contractor to do it either at your cost or the body corporate’s cost. This is where a lot of disputes occur. Again, it’s different expectations from either side of the dispute and if you can’t resolve this with the committee yourself, you may need to engage an independent expert to come in and say, “the hedge is too high to be trimmed by a ‘nonspecialist’ and not within the scope of duties allocated for the caretaking service provider”.

A variation in the agreement may result in showing what exactly the caretaking service provider must do, and by virtue, must not do.

However, committees can be intransient and don’t want to reform their agreements. You can get committee chairs who just want the manager to do what they tell him to do. The resident manager might try to resolve things by engaging an independent expert to review the duties and a chairman might say, “I’m in charge here and we’re not varying anything”. Or even worse the resident manager takes the attitude that they

paid a lot of money for these management rights, and no one is going to tell them what to do.

That’s when lawyers get called in. It’s an important process to find the middle ground where everyone is comfortable.

If you’re agreement states that you’ve got to replace light bulbs in the common area, that seems straightforward, but if the light bulbs are broken because there’s a fault then you need a licensed electrician.

While the Workplace Health and Safety Act does not dictate what a safe working height is, it sets out what safe and unsafe working conditions are, and if there is a risk of a fall by a person from one level to another that is reasonably

likely to cause injury then this is unsafe, regardless of the height. Furthermore, if you are in dispute over trimming a two-metrehigh hedge don’t arbitrarily cut the hedge height in half so that it is more manageable. We strongly advise against this sort of action because it could inflame the dispute unless the committee agrees (in writing).

MLR is all about building good relationships and negotiating outcomes that are in the best interests of the scheme. Diplomacy is a much better tool for a resident manager than the chainsaw approach.

Next time you are wondering what your duties should be, read your caretaking service agreement and talk the contents over with your committee, attempting to bring about clarity via specificity. If you are unable to achieve this by yourself then you should engage an independent specialist to assist you and the committee.

Then when you are all in agreement bring in the lawyers and accurately record everything to avoid future misinterpretations.

Closing out the grey areas in letting appointments

By Ben Ashworth, Senior Associate, Small Myers Hughes Lawyers

Your letting appointment with owners must clearly set out in detail all fees and charges you propose to make. This document forms the core basis of your relationship with owners in your letting pool.

We often see managers who want to keep their appointments short and uncomplicated.

Whilst this sounds good in theory, very often these short and sharp legal documents rarely cover all situations that you may encounter and can often lead to unfortunate outcomes when your fees and charges may be challenged.

It is only a matter of time before managers will encounter one

The common grey areas we see in letting appointments include the following:

• Owner use of their lots.

• Owners selling their lots.

• Dealing with forward bookings when the letting appointment is terminated.

• Deciding what is appropriate advertising and how much should be spent.

• Notifying and recording any increases in fees.

• Charging, sharing, or keeping a fee for cancelled bookings.

• Payment of rates, levies and other owner expenses on behalf of the owner.

• Identifying consumables provided to guests during each stay and the owner’s expenses associated with the provision of these consumables.

• Identifying any other letting agent services packaged with a guest’s stay and the amounts charged to guests for these services.

• Identifying any extra amounts to be charged when arranging maintenance and replacements.

or more of the above situations and will find themselves looking at their letting appointment and crossing their fingers, hoping it will be covered in the appointment. Often letting appointments will touch upon an issue and provide a general guide to what should occur but won’t dig deeper into a problem.

For example, many letting appointments for short-term lettings will state that owners can use their lot for a limited

period, for instance, 14 days but won’t state what happens if the owner decides to stay longer. Technically this is a breach of the letting appointment by the owner, but without a clear consequence of this breach stated in the letting appointment it isn’t going to be helpful when the manager just wants the lot back in the letting pool. Most managers are not going to initiate a costly damages claim for a breach of contract against

the owner, and spend far more money than they could win back, plus burn numerous bridges with the owner at the same time.

This situation could be avoided if the letting appointment states up-front what will occur when an owner stays in their lot longer than their allowed period. Solutions might include commission increases for an equivalent period, a daily fee, or some other outside-thebox solution that suits your circumstances. The goal is to have a clear consequence stated in the letting appointment when there is a breach so that there is no ambiguity about what your rights and options are.

No one wants their letting appointments to look like the latest version of “War and Peace” or a “Lord of the Rings” trilogy, but if you want to be proactive and avoid some common problems it is well worth adding an extra clause or two to your letting appointment to cover all situations that may arise. It is the lesser of two evils.

I recommend all managers look at their letting appointments and consider the grey areas they have lurking there. Replacing the vague, grey areas with clear wording outcomes will make your life less stressful in the future.

Managers should contact their management rights specialist lawyer to help them with this process.

Installing solar infrastructure in a community titles scheme

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

Rising cost-of-living expenses and an environmentally conscious community have ignited a surge in demand for sustainable and energy-efficient solutions across Queensland.

Already, with more than 790,000 homes and small businesses connected to solar energy across the state, Queensland boasts the highest rate of residential rooftop solar installations in the nation.

With that number expected to continue to rapidly rise, this article will explore the regulatory framework regarding the installation of solar panels and solar hot water systems (solar infrastructure) in Queensland community titles schemes.

Amendments to the Building Act 1975

Amendments, commonly known as ‘ban the banners’ provisions, were introduced to the Building Act 1975 (the Building Act) in 2010 to support sustainable housing and enable homeowners to install solar panels or a solar hot water system without regard to aesthetic considerations.

However, the Court of Appeal in Bettson Properties Pty Ltd & Anor v Tyler [2019] QCA 176 highlighted the need for further reforms to reinforce the original policy intent of the 2010 provisions.

Amendments to the Building

Act in 2022 clarified the 2010 provisions by restricting the reasons a body corporate or a developer can–through a ‘relevant instrument’ such as the by-laws or any architectural and landscape code in the community management statement–prohibit the installation of solar infrastructure on a roof or other external surface of a ‘prescribed building’.

Installing solar panels in a building format plan scheme

For bodies corporate registered under a building format plan of subdivision (formerly, a building unit plan), the roof and the outside of the building are typically common property.

According to the Building Act, if a roof or other external surface of a prescribed building is common property, a body corporate cannot, under a relevant instrument:

• prohibit the installation of – or restrict the location of – solar infrastructure on that roof or other external surface, or withhold their consent to install solar infrastructure in these areas, unless:

- it is necessary to preserve the building’s structural integrity; or

- there is insufficient space

on the roof or other external surface for the installation of solar infrastructure by each lot owner; or

- in relation to a solar hot water system – it is necessary to prevent noise from piping causing unreasonable interference with a person’s use or enjoyment of the building.

However, these provisions are not a ‘green light’ for owners to install their solar infrastructure.

Owners must also be mindful of their obligations under the body corporate legislation, which requires any improvements to the common property for the benefit of their lot to be authorised by the body corporate – either by the committee (where certain criteria are satisfied) or by ordinary resolution at a general meeting.

Failure to obtain the appropriate body corporate approval may result in unnecessary disputes over unauthorised improvements.

Responsibilities of owners for their improvements to the common property

There is sometimes a reluctance to approve these installations on common property because of a misconception that it may lead to additional body corporate expenses.

However, the body corporate legislation requires an improvement by an owner which is authorised by the body corporate to be maintained in good condition by the owner (unless excused by the body corporate).

A further safeguard against body corporate liability is the ability to impose conditions upon the approval. For example, a condition may be that if works need to be carried out on the common property roof, the owner would be responsible for any costs associated with the temporary removal of their solar infrastructure.

When imposing any conditions, the body corporate must always bear in mind its legislative obligation to make reasonable decisions.

Details about improvements to common property by owners and any conditions made upon the approval should be kept by the body corporate in a register of common property authorisations.

Installing solar panels in a standard format plan scheme

Conversely, for bodies corporate registered under a standard format plan of subdivision (formerly, a group title plan), the roof and the outside of the building are part of a lot.

© Adobe Stock stock.adobe.com

Under the Building Act, if an owner in a prescribed building is seeking to install solar infrastructure on their roof or another external surface of their lot, they will not be affected by a relevant instrument that prohibits the installation of solar infrastructure or restricts its location in these areas.

Nonetheless, an owner will still need to obtain consent for the installation, if required to do so, under a relevant instrument. For example, a by-law may require body corporate approval to make a change to the external appearance of a lot. Failure to obtain body corporate consent in this situation may mean an owner is breaching the by-laws.

If an owner seeks body corporate approval for the installation of solar infrastructure under a relevant instrument such as the by-laws, the body corporate cannot unreasonably withhold its consent.

Limitation on the operation of the Building Act, Chapter 8A, part 2

Importantly, the Building Act does not give owners unfettered rights to install solar infrastructure on the roof or other external surfaces of a prescribed building.

In addition to the limited reasons discussed earlier for which an installation can be prohibited, or consent can be withheld in relation to a common property roof or other external surface, the Building Act specifies that part 2 does not entitle owners to install solar infrastructure in a way that unreasonably prevents or interferes with a person’s use and enjoyment of any part of the building.

This sentiment is further supported by a similar section in the body corporate legislation which provides that the occupier of a lot must not use the lot, or the common property, in a way that interferes unreasonably with the use or enjoyment of another lot or the common property.

Consequently, owners should consider whether an installation could have a negative impact on others in the scheme – for example, if the solar panels would cause a significant glare into another lot.

This reminder is particularly important for owners seeking to install solar infrastructure

purely on their lot, as they may understandably assume that there are no other considerations beyond obtaining body corporate consent (if required under a by-law).

Considering statutory easement rights

Another relevant consideration when installing solar infrastructure is the possible existence of a statutory easement under the Land Title Act 1994 (Land Title Act), which may allow an owner to enter or use the common property or another lot for accessing utility services and utility infrastructure.

Chapter 2, part 7 of the Body Corporate and Community Management Act 1997 provides for the application of statutory easements that may exist under the Land Title Act

An instructive consideration of statutory easement rights, in the context of installing solar infrastructure, was in the decision of Neptune Point [2022] QBCCMCmr 34, in which the applicant sought retrospective approval for solar panels installed on a common property roof.

The adjudicator observed that the interaction between the statutory easement provisions and the provisions regarding improvements to common property can be confusing, and that “a claimed statutory easement does not displace the requirement to obtain body corporate approval where required under the regulations or a by-law”.

The adjudicator further remarked:

Accordingly, a body corporate should consider the statutory easement provisions when deciding whether to approve an improvement involving the installation of utility infrastructure to service a lot. The body corporate should consider if the infrastructure is reasonably necessary to supply the service, and whether the manner of installation would unreasonably interfere with the use and enjoyment of lots or common property.

Improvements that affect insurance premiums

If the installation of solar

infrastructure on common property or a lot is likely to increase the body corporate’s insurance premium, an owner must notify the body corporate about the nature and value of the improvement as soon as possible after the work is substantially completed.

If the body corporate’s insurance premium increases due to an owner’s improvement, the owner may be asked to pay more towards the premium.

Body corporate bylaws contrary to the Building Act

Section 180(8) of the Body Corporate and Community Management Act 1997 specifies that a by-law must not include a provision that has no force or effect under Chapter 8A, part 2 of the Building Act

For example, if a body corporate records a by-law that restricts the installation of solar infrastructure to maintain uniformity of appearance throughout the scheme, it may result in a dispute application being lodged through our office regarding the validity of the by-law.

Where the body corporate refuses consent for the installation of solar infrastructure

If the body corporate refuses an owner’s application for the installation of solar infrastructure, the owner may, after sufficient efforts have been made to resolve the matter internally, lodge a dispute application through our office.

Alternatively, if you would like further information about the application of the Building Act provisions and avenues for dispute resolution under this legislation, you can contact the Queensland Building and Construction Commission or seek independent legal advice. We hope this article improves your understanding of the extensive legislative framework surrounding the installation of solar infrastructure in community title schemes and reduces the likelihood of avoidable disputes arising on this subject.

On the long road with Michael Philpott

Grantlee Kieza talks with Michael Philpott , the owner of MR Sales and Tourism Brokers.

After more than 40 years in the real estate industry, you’re not slowing down?

I’m passionate about the industry, always have been, and I just love being involved in every aspect of it.

Last week I was in Airlie Beach on Sunday, and off to Biloela and Emerald over the next couple of days doing inspections. I drove from there down to Willows in the Gemfields area, then to Dalby for a quick meeting and drove back to our office at Southport. The next day I was in Sydney heading south to Merimbula and Tumut before going back to Sydney at the end of that week for more meetings. I returned to the Gold Coast on Saturday and went to Bargara and Bundaberg on Sunday. Then I flew up north to do another sett lement!

It’s a lot of travel in a week, but as I say, I love the real estate, tourism, and management rights businesses.

When did you start working?

Straight out of school. I grew up in a town called Yeoval in central western New South Wales where my family raised sheep and catt le and grew wheat. The farm is still

in the family. I went to boarding school in Sydney, and I started as a trainee real estate agent at the end of 1983. I’ve been involved in real estate ever since.

Where was your first job?

I started at a real estate agency in Dubbo, which isn’t far from Yeoval, and then went to Sydney for a while before I was

asked to return to Dubbo. We did some development work around there, I’m still involved with Grangewood Estate residential subdivision, Dubbo’s Premier Lifestyle Estate. I’ve been doing that since I was 21 so it’s been 37 years, and we still have a hundred-odd blocks that we’re selling up around the golf course there.

How did you end up with MR Sales and Tourism Brokers?

I worked for James Fairfax for a while and we did a development called Tallwoods near Forster-Tuncurry, north of Sydney. James was from the famous media family.

We developed a $200 million residential golfing estate at Tallwoods which included a championship course and Torrens, Strata and Community Title developments. We won several awards from the Urban Development Institute of Australia. I was the general manager there for three and a bit years, with involvement prior to that.

Michael Philpo

After that, I went back to Sydney where I was asked to be state manager at ResortBrokers. When I moved on in 2005, we formed Tourism Brokers in NSW. Then we came to Queensland together with MR Sales. We’ve got 18 people working with us from Cairns to the bottom of Victoria.

MR Sales has been a huge success story.

I’m very proud of what we’ve achieved. It’s Australia’s largest and most successful company focusing solely on the sale of management rights. The company was formed about 15 years ago, and we took a stronghold when we bought out Jake and Lynn Clarke, who we still work with. I’ve been the Owner/Director since 2016. We’re also active members of ARAMA and participants of forums in other states, so our team is always up-to-date and well-informed of industry progress and the market value of the day. It comes down to our experience, depth of knowledge and a great team.

Is it a family business?

Yes, my whole family is involved. My wife Donna runs our administration and the office management. My daughter Rebecca coordinates and runs MR Sales. My other daughter Samantha works in the Sydney office for Tourism Brokers and looks after enquiries. We’ve got a fantastic team of people, a mixture of people at the Gold Coast and Sydney as well as people who work for us remotely and have done for many years.

Where is home?

We bought our office at Scarborough Street in Southport and we have a house on the Gold Coast. We fl y between Sydney and the Gold Coast because we have houses, offices and family members in both places. But now people are seeing even more of me because we bought a Winnebago and we’re out and about, calling into properties, with a bit of relaxation at the same time.

You’ve overseen some huge transactions over the years?

Yes. The sale of Q1 Resort & Spa, reportedly the world’s third tallest residential tower, was one of the largest management rights sales in Australia.

The Towers of Chevron Renaissance had 700 strata units in one scheme – reportedly the biggest single strata scheme in the southern hemisphere. We also sold the management rights for the 410-room Holiday Inn Surfers Paradise, now badged Mantra on View Surfers Paradise, as well as The Wave Broadbeach, Riverplace Apartments Brisbane, Palladium Apartments Sydney, as well as many others throughout Queensland and northern NSW.

The management rights industry has had some rocky periods over the past few years.

COVID-19 had a big impact on our business because of the severe reduction in the number of tourists on the Gold Coast. However, the volume of sales for tourism-related properties has now returned considerably.

Politicians also did some damage when they talked about three-year terms and reducing 25-year terms to 10 years. But all that’s gone with the wind now –people are just wanting to do a fair day’s work for a fair day’s pay and to protect their investment. We think the industry has a very big future, and we’re in the process of doing a big recruitment drive because we need more people to sell for us.

What challenges are looming over the MLR industry?

Banks aren’t overly keen on financing properties with less than a $150,000 net in earnings. Below this, banks

think there’s not enough money in the deal. They want to protect their interest and the buyers still have to earn reasonable money. Banks will still finance these properties but it’s hard to get there.

The problem here is, if you’ve got an income of $150,000 to $200,000 at a property and you put a multiplier of four times against that, it’s $800,000 for the business. Then you throw in a $2 million unit and the numbers are out of kilter for the return on investment. It means you need high-net-worth individuals to buy the management rights but are they prepared to do the work for the reward?

The high price of real estate these days has changed the MLR industry?

We’ve seen the rise of ‘decoupling’ where they’ve attempted to allow in smaller owners/operators who haven’t got access to the big dollars – managers who can’t buy the $1,000,000-plus unit but can still buy the management rights. They might try to buy into the property with a smaller unit in the complex or some cases do not have a unit at all. Others might lease a unit in the complex but still run the caretaking and lett ing business.

What is the current state of the market?

There is a lot of pent-up demand. Some of the financing takes months to get through and then the sale must be approved by the body corporate. So that’s why the numbers of sales are

down. However, the top end of town is solid because it’s corporate dollars and you’re talking nets of above $600,000. The mum and dad operators, the ones who primarily run a lot of the complexes on the Gold Coast are the ones in a grey area. They are the ones that we need to support.

It’s about education. New buyers, especially those from New Zealand, New South Wales, and Victoria get excited when they find a lifestyle business on the Gold Coast, but they may not be familiar with management rights and it’s crucial to educate them about the industry.

That’s why we have teamed up with Col Myers and Count Financial, Mark Ryall, and others to do regular seminars to inform buyers about this great industry and what’s in it for them. The more professional we are as an industry, the greater longevity. We need to grow and develop the industry to benefi t everyone.

What do you do when you’re not selling management rights or motels?

I do have a golf handicap, but I don’t get out on the course enough.

I’m just passionate about the industry and I spend most of my time working to do whatever I can to add value to it. We’re in the tourism game which is a great business. It’s a good life. You build a lot of friends while doing your job.

Michael Philpott and the team

Do not read this article!

By John Mahoney, Partner, Mahoneys

Unless you want to protect your management rights business that is!

Instead, go and check the option exercise dates in your management rights agreements and deeds of variation where

you or a previous manager may have added a further option/s to the agreements.

There are some articles that I wish I never had to repeat. This is one of them. It was first published some 20 years ago, and this is a modified version of the original one. Regrett ably, it seems that many onsite managers did not read it or ignored it as we continue to see so many instances of managers not exercising the option to renew their management rights agreements.

Many managers wrongly think that topping up their agreements (the term the industry uses for amending an agreement to add another option) has the eff ect of exercising an existing option and somehow automatically extending the term. That is not so.

Very few options are ‘automatic’.

Many require the option to be exercised by giving written notice before the end of the current term, but many give a window of opportunity within which to exercise the option – typically between three and six months from the end of the term.

So, I encourage all managers to go and look carefully at exactly what their agreements and deeds specify. Check to see what, if anything, your lawyer told you when you purchased the business. Check to see how the notice must be given – most agreements will require written notice actually sent by post or by hand delivery to the body corporate manager or secretary. Email may not be enough. Consult a lawyer now if you are in any doubt at all. Diarise the date/s and some earlier reminder dates in your calendar, mobile phone or wherever you can.

Problems can arise if, after the manager forgets to exercise an option, the body corporate exploits the opportunity and seeks to impose changes to the agreements against the manager’s interests. Even worse, if there has been real conflict in the complex, the body corporate might seek to tender for and engage another contractor to conduct the business or do away with management rights altogether. We have seen this happen more than once in recent times.

Until recently bodies corporate in these cases have also imposed a transfer fee when the manager sells, claiming that because the agreements had ended, the date from which the transfer fee should be calculated was the date of the new agreements.

•

•

•

•

•

•

The consequences of not exercising an option by the due date can be dire. If an option is not exercised in accordance with the terms of the agreements, the agreements will expire at the end of the term, in which case the manager no longer has the right to conduct the caretaking and lett ing business for the scheme. In such a situation, generally, the only solution is for the manager to request the body corporate to enter into new agreements. However, depending on timing, it may be possible to adopt a simpler process at a general meeting. We have successfully devised and used a simpler procedure at the general meeting resulting in a lot less expense for the manager but the opportunities to do so are rare.

Fortunately, the Body Corporate Commissioner’s Office in a recent decision ruled this is not the case.

As suggested above, managers should ensure that they diarise all of the option extension dates to ensure that they do not lose the opportunity to renew the agreements.

At the time of exercising an option, managers should seek sound legal advice and ensure that the extension of the agreements is properly recorded in a document executed by the manager and the body corporate, as the documenting of the option being properly exercised and the body corporate’s acknowledgement of that is something a subsequent buyer will want to see. We can of course assist you with that at the time.

The consequences of not exercising an option by the due date can be dire

Revised Tax Cuts from July 1

By Lel Parnis, Principal, Holmans

In late January 2024, the government announced changes to the originally proposed Stage 3 tax cuts, set to take effect from July 1, 2024.

In March 2024, the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024 (the Bill) received royal assent. The Bill contains the government’s revisions to the Stage 3 personal tax cuts,

which take effect from the 2024 to 2025 financial year.

Prime Minister Anthony Albanese announced these changes will deliver “broader and better outcomes for all taxpayers”. The updated tax cuts increase the tax savings for low and middle income earners and reduce the benefits for higher income earners, compared with the originally proposed changes. No taxpayer will pay more tax than would apply under the 2023-2024 rates, but higherincome taxpayers will receive a lower tax cut than under the previous Stage 3 plan.

Taxpayers with taxable incomes up to $45,000 will benefit from a reduction in their marginal tax rate from 19 percent to 16 percent (maximum tax saving of $804). Under the previous Stage 3 plan, there was no change to the current (2023-2024) tax bracket ($18,201 to $45,000) or

marginal tax rate (19 percent). Middle-income taxpayers will receive an extra tax cut of $804 (on top of the tax cut they would have received under the previous plan).

The benefit of the changes (in comparison to the previously legislated Stage 3 plan) cuts out at taxable incomes of approximately $147,000 — taxpayers at this income level will be $36 worse off under the changes (albeit with a saving of $3,729 from 2023-2024 rates).

For taxpayers with taxable incomes of $200,000 and above the tax cut will be worth $4529 instead of $9075 — ie., the Stage 3 benefit will be cut by half.

In summary, from July 1, 2024, the revised Stage 3 tax cuts will:

• Reduce the 19 percent tax rate to 16 percent.

• Reduce the 32.5 percent tax rate to 30 percent.

• Increase the threshold above which the 37 percent tax rate applies from $120,000 to $135,000.

• Increase the threshold above which the 45 percent tax rate applies from $180,000 to $190,000.

There will be no change to the current tax-free threshold of $18,200 or the tax-free threshold of $416 on eligible income under the taxation of minors’ rules.

The Treasury Laws Amendment (Cost of Living—Medicare Levy) Bill 2024 also received Royal Assent in March, resulting in increases to the Medicare levy and Medicare levy surcharge low-income threshold amounts for individuals, families, and individual taxpayers and families eligible for the seniors and pensioners tax offset from July 1, 2024, providing further tax cuts for low and middle-income earners.

STRATA COMMUNITY EDUCATION SERIES

PROUDLY PARTNERED WITH

SEMINAR TOPIC DATES AND LOCATIONS

Legislation Changes: Pets, Parking, Smoking and Scheme Termination

With legislation imminent, our panel of experts will discuss the key changes and what this means in reality for all stakeholders including how to navigate the upcoming changes If you are a committee member or building manager, this topic is essential to your role so you can get up to speed with the correct information to make informed decisions

AIRLIE BEACH

Wednesday 1st May

Coral Sea Resort

SUNSHINE COAST

Thursday 9th May

Maroochy RSL

GOLD COAST

Wednesday 15th May

Heritage Bank Stadium TOWNSVILLE

Wednesday 22nd May Mercure Townsville CAIRNS

Thursday 23rd May Crystalbook Riley BRISBANE

Wednesday 29th May Pat Rafter Tennis Arena

Body corporate manager appointment motions:

Don’t be “penny wise and pound foolish”

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

The motion for the appointment of a body corporate (strata) manager can be misleading and requires significant research for owners to make an informed decision.

It is typical for a motion to appoint a body corporate manager to only represent the administration/ management fee for the initial term of appointment. Other fixed costs of the appointment are typically mentioned elsewhere in the administration agreement. Disbursement fees (PP&S), data storage, owners’ portal, archive storage, software, and communication, are often represented as a fixed fee or cost-per-lot and are typically not mentioned or factored into the cost represented in the motion. The motion will reference the terms and conditions in the administration agreement attached to the meeting notice, and voters are expected to understand that these costs exist and are in addition to the cost represented in the motion wording.

It is not unusual for the additional “other costs” (often fixed fees-perlot) inherent in the administration agreement to more than double the cost represented in the motion being considered to appoint a

body corporate manager. Other variable charges may also be relevant. For example, emails, invoice (EFT) costs, phone calls, advice to owners, site attendance, travel costs, and so on...

These variable costs are difficult to estimate. A good decision relies on the quality and quantity of the information considered.

An ‘agreement comparison’ of known or fixed costs that also includes an estimate of anticipated costs provides the additional information necessary to enable owners (voters) to make informed decisions likely to result in better outcomes.

How and why can motions to appoint a body corporate manager appear on the agenda and not represent the total fixed costs?

Motions, other than statutory motions, can only lawfully be included on the agenda of a general meeting (AGM/EGM) in one of the following ways:

• As an owners’ motion, submitted prior to the financial year-end.

• Owner petition (EGM).

• As a committee motion.

• By order of an adjudicator or court.

A body corporate manager does not have the right to arbitrarily include their motion for reappointment on the AGM agenda. Although there are instances where the right of resubmission is written into the admin agreement.

The committee members’ code of conduct requires that the committee, amongst other things, must act in the best interests of the body corporate. The committee ought to carry out appropriate due diligence on all proposals being considered.

A diligent tender process aligned to the needs of the scheme (scope of works) would identify all known or likely costs with each body corporate management

firm in consideration. This process would assist owners in making an informed decision.

However, there are other factors of consideration that should influence a committee’s recommendation for appointment:

• Service delivery;

• The capacity of the appointed body corporate manager; and

• Their knowledge, experience and ability.

Reputation and stability are also significant considerations that may lead a committee not to recommend the cheapest quote on the agenda.

Voters without the benefit of a committee’s due diligence and guidance will often make decisions based on apparent cost – hence why the value represented in the motion is often relevant to a “probability of appointment”.

The economics of strata management are another relevant factor.

The strata market in Queensland is extremely competitive. Body corporate (strata) management firms are structured differently,

have differing overheads, and present themselves differently to attract new business.

Body corporate management (strata) firms generally cannot operate or remain in business based solely on the indicative administration fees for included services represented in the motion or the agreement - the cost of being in business is significantly higher. Therefore, unless their administration fee is much higher than typical, it is necessary that other revenue is derived elsewhere in the agreements.

The true cost of strata management is another topic for discussion later.

The lower the administration fee appearing in the motion, the greater the likelihood of additional costs. The alternative can only be a reduced service delivery.

I implore committees to do their research, carry out proper due diligence, conduct interviews, and assist owners in making informed decisions. Seek value for service and quality of management, rather than focusing solely on a cheap price, as this may not provide the experience you desire or consider a good decision in hindsight.

Suggested topics for future articles are welcome: Contact Via editor@resortnews.com.au

SMALL MYERS HUGHES

Management Rights Specialists

QLD-NSW-VIC-WA

BUYERS - SELLERS - DEVELOPERS

Our team of legal experts, led by Col Myers, has over 40 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

Demand is on the rise for quality motel managers

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

Anyone who has ever needed one knows that a good-quality motel manager is a commodity that is highly sought after. The value of a good manager to the performance of any motel business should never be downplayed. Business owners often choose not to operate their own motels for many different reasons, and one of the benefits of motel ownership is that the owner does not need to live onsite and can employ or contract a manager to handle the daily operations of the business.

The skills that make a good motel manager are not restricted to just a few. A wide range of skills are required to excel in most managerial roles, with motels being no exception. To choose just one of these skills, being able to successfully deal with and handle many different types of people and personalities, would be a main one. Being able to organise and manage employees including cleaners, chefs, wait staff, and front-of-house workers, to guests who are travelling for various reasons and come from all different walks of life.

Those who do it well stand out from the crowd by not standing out at all.

As with many professions, demand for people to fill positions fluctuates with how an industry is performing. The motel industry is no different in that demand for managers fluctuates with changes in demand for accommodation, occupancy, or trading activity. During 2012, demand for motel managers was very high. It then declined for some years until it started increasing again in 2017. All in line with fluctuations in demand for accommodation. Today the demand for goodquality managers has never been stronger. Essentially, if business is good, that can bring a change in attitude and lifestyle considerations where one may look to step back and take more time for themselves or their family, knowing the business is performing well. Often not having the weight of financial pressure can be a catalyst to this. In times when business trading and confidence declines, cost-cutting measures are re-employed and reducing expenses such as management wages is back on the table for consideration.

With the expectation of a continued increase in demand for motel managers going forward over the long term, let’s

consider this situation. Some investors buy motels with the clear intention of operating them under management. Others choose to operate the business themselves and then due to various circumstances, employ a manager thereafter. The ownership of a successful motel business from afar, without having to operate it is common. Professional management is often comprised of a couple or individuals, experienced in operating motels, who have a genuine interest in improving the trading performance of the motel over and above its current trading. Sitting at reception and trying to look busy is of no interest to them. In the past, it was the “norm” to employ anyone who said yes to the question, and the owner expected that this arrangement would work. In many cases, it did not, and it ended up resulting in motel managers in general terms receiving a bad reputation.

The old saying still rings true (and probably always will) “if you pay peanuts you get monkeys.” The manager’s remuneration is dependent on many things including experience, role required, performance, skills, and so on. If a manager feels

they are being underpaid (rightly or wrongly), it is highly likely their level of service (particularly being in a service industry) to the business and guests will be diminished. This means reduced standards, performance, quality, operation, and damage to the business’ reputation. It must be said that placing any business, including a motel under management, and expecting it to be a set-andforget situation is not realistic. Managers are employees and require some level of direction, guidance, and input only the business owner can provide. Many motel owners have owned and operated a motel for a period of time and have then acquired another. The owner takes the role of overseeing both businesses and relief managing themselves as required. Staying involved in a supervisory role over management is prudent and necessary to maintain the standards the owner expects for the business.

A common question that I am asked within the motel industry is: “How much should I pay a manager?”

Remuneration packages for motel managers are generally

© Adobe Stockstock.adobe.com

Letts get practical – see what I did there!

By Kelley Rigby, Managing Director, Lett s Group

This month’s article is somewhat unique compared to my usual ones. There are no funny stories or my usual preaching about perspective and positivity. Instead, we’re delving into the practical side of things, exploring the tools we use to create marketing. I know I’m supposed to be writing about building relationships, but having these tools will pave the way for you to do just that.

So, let’s get practical

During both of our recent Letts Learn face-to-face courses, there was a common theme. It was great that the attendees could walk away with all our marketing ideas, techniques, and strategies. But what tools did they need to implement them?

determined by the market and the negotiation process between the prospective employee and employer. The type of motel involved, and specific duties required to be completed by the manager will affect the level of the package. Is the manager required to manage the property, cook breakfasts/lunch/dinners, clean, complete the accounts, manage employees, etc.?

This is different from one motel

I am going to talk you through some of the tools and subscriptions we use at Lett s Group

This is now a section of our course, but I thought I would share a little bit with all of you now to offer some assistance. Please grab a pen and paper quickly... I’ll wait.

Now that you are ready, I am going to talk you through some of the tools and subscriptions we use at Letts Group that help us stay on track and systematise our marketing.

First things first, for designing creative EDM (Email Direct Marketing) with pictures and writing, we use Canva. Canva has a free version where you

to the next depending on the size of the property, the type of clientele, whether there is a restaurant onsite, the location of the property, the requirements of the employer and the skills of the employee. There may be a living allowance built into the package for onsite accommodation, food, and beverages. Management packages can be fixed salaries or in many cases are a fixed salary plus a bonus system

can do and use all the basic functions. At Letts Group, we use the Pro version due to the volume of our business. Canva is great for all things creative marketing, including newsletters. They have templates that you can quite literally copy and paste your content and photos into. Many YouTube videos can assist you with this.

Next, we use a CRM (Client Relationship Management) system called Mailchimp. You may be able to use the systems you already have within your business, for example, Resly or REI. We use this system to email

based on the achievement of certain goals, such as reaching a sales income target or profit target for a particular period.

The general management type is either employment on a permanent or contractual basis. However, the less permanent role offered by moteliers is the relief management role. This is more of a short-term position to allow the onsite owner (or permanent manager) time to get away

out all the amazing content we create in Canva. This also allows me to write notes, track open rates on emails, and see who has opened the email. This is a great way to analyse what is working and what is falling flat in your marketing. Again, there is a free version of Mailchimp, so if you are looking to simply give it a try, it won’t cost you anything. Shop around, as I do believe there are better options out there, but I have grown accustomed to using Mailchimp. Lastly, I want to talk to you about AI, ChatGPT, or whatever the cool kids are calling it these days. Do we use it at Letts Group? You bet we do. It is no secret that I was NOT an A student in school, other than in sports, so having ChatGPT to help ensure that my grammar is 100 percent correct is a game-changer. You can go to the site and simply give the system bullet points, and it will generate whatever you tell it to. However, be cautious: if you start using this system, always read over the content. It is helpful but it isn’t you, and it isn’t the expert on management rights — that’s you. It is a great tool to use to enhance the content you are producing, but it’s important to review and personalise the output.

I hope this has helped some of you kickstart your marketing campaigns, communications, and newsletters.

Don’t worry, next month I’ll be back to my positive, preachy self!

from the business for a break, rather than a more permanent arrangement. Between a couple of days and a couple of months is usually the relief management term, and this type of manager can be very valuable to a business owner. Allowing them to get away, recharge their batteries, clear their head, and come back to work refreshed and ready to go again.

Doomed to fail: A self-help guide

By Mike Phipps, Mike Phipps Finance

The proliferation of self-help books, trendy fad diets and get-well strategies we witness in this modern age suggests we should all be toned, taut and terrific, to say nothing of being in a happy and positive mindset. Lord knows there’s enough of this stuff out there to inform and motivate anyone with even a passing interest in abdicating personal outcomes to some self-styled wellness guru or personal coach.

Turns out the whole idea of selfhelp via a third party is nothing new, with tomes dating back to 1840 suggesting methods of self-discovery and improvement. I suspect if one was to investigate the underpinnings of modern religion and ancient mysticism the concepts would prove much older than that.

Of course, for many, including at times the managing director, the concept of personal improvement can take many a twist and turn. For example, it has become apparent that the acquisition of a home gym does not, in itself, result in improvements to body shape and physical fitness. One need only consult Gumtree or Marketplace to find any number of examples of the home gym ‘build it and

they will come’ philosophy… the thing sat in a garage for six months and I saw no improvement, so it must be sold.

Likewise self-help and motivational volumes, usually written by people who might be better served pointing the analysis more inwardly. I’m not convinced that purchasing “How To Be More Self Aware” by Donald Trump is going to be of much assistance. Even if it turns out to be wonderful, the reality is that most readers of these sorts of publications don’t get past chapter three.

Having reflected on the selfhelp and motivation industry it

occurs to me that a major market gap exists. The question, dear readers, is to whom I should turn if I wish to fail. In this world of equality where every child wins a prize, why should failure not be celebrated and indeed, even encouraged? If it’s good enough for our politicians, then surely the general population should be likewise blessed.

Of course, the multitude of strategies one might employ to ensure failure would surely exceed the word count that this esteemed publication allows, so I’ll concentrate on my only area of, shall we say, expertise. In my 45 odd (some might say

very odd) years in finance I’ve encountered any number of borrowers who must surely have read an ‘Achieving Business Finance Application Rejection’ guidebook of some sort.

I dedicate this article to them.

Like all self-help prose I shall begin with a gratuitous *motherhood statement:

To achieve complete failure, one must free one’s mind of the shackles of societal expectation and embrace the opportunity to fail, when all around you are succeeding.

Now, let us begin…

Step 1 - At all costs avoid professional advice. There is simply no point in pursuing your failure goals if you are going to listen to people who know what they are talking about and have your best interests at heart. To ensure your journey to failure starts on solid ground we suggest listening to your footy mates around the barbecue, your aunt who made some money on CBA shares in 1991, or your best friend who is only moments away from monetarising that dog grooming app. Okay, the grooming app may actually be a good idea given what we pay to keep our beloved hound in pristine condition, but I digress.

© Adobe Stockstock.adobe.com

© Adobe Stockstock.adobe.com

What exactly is Trust Accounting anyway?

By Nikita Johnston, HiRUM Software Solutions A Guesty Company

Navigating the world of Trust Accounting can be tricky,

but fear not – we’re here to break it down for you. It’s not uncommon to encounter terms that seem familiar until we realise we may not fully grasp them. One such term often thrown around is “Trust Accounting”. So what exactly is trust accounting and why do we need it in the short or long term rental industry?

Step 2 - Do no research into the industry or business you wish to enter. Attend no education courses, join no professional bodies. Most importantly, under no circumstances prepare a business plan outlining your pathway to success. Really defeats the purpose of the exercise.

Step 3 - Don’t pay your debts and don’t care about your credit rating. Even better, forget you have creditors at your door and when you get found out, have no explanation. Works every time.

Step 4 - Don’t pay your tax. This strategy is almost foolproof, in-so-far as it will spook the hell out of the banks and have the best-resourced debt collectors

What is a Trust Account?

Basically, trust accounts were introduced as a method by which someone’s funds could be securely held until such time as they became due to be released to another party or returned to the original owner. When it comes to the rental industry, there is often a need to hold funds on behalf of a third party until the supply of goods or services has been provided.

The goods and services in the rental industry generally relate to a long-term lease on an apartment or perhaps a partial or full payment towards a future holiday booking.

Investors who offer their properties up to long term tenants may often agree to place some of their own funds “on hold” to ensure funds are available for emergency repairs or replacements. The agent is required to operate a licensed trust account and will hold these funds in their trust account until such time as they are used for repairs or else released back to the apartment owner.

looking for you. It’s a win-win.

Step 5 - Have no understanding of how debt servicing standards work. To achieve this outcome, best to avoid professional finance brokers because they have an obligation to explain this stuff to you. If your finance broker kills your plan before you get to a formal loan application, the opportunity for failure is ripped from your grasp, and we can’t have that.

Step 6 - Embellish your asset and liability position. Common strategies include cash you don’t have bank statements for, houses owned by your mother and pending estate settlements of relatives who remain alive and kicking. Forgetting

In addition, the tenant would usually also deposit their periodic rental payments into the same trust account.

In the short term rental industry, guests are often asked to pay a deposit to secure their desired holiday accommodation, with these funds being held in a trust account until their date of arrival.

Once the guest arrives, payment is generally made for the balance of the accommodation, and this too is deposited into the same trust account.

These funds remain “in trust” until such time as they are dispersed to the legal owner, which generally means the owner of the accommodation, along with the management company operating the trust account.

How does Trust Accounting work?

How these funds are dispersed is calculated based on the rental agreement between the accommodation owner and the business operator.

Most operators would use specialised industry software

debts or understating the balances are also sure-fire paths to application failure.

Step 7 - This one is subtle and best employed by the more sophisticated failure aficionado. It involves being a seemingly qualified borrower, who works diligently to be a nightmare applicant. Common strategies include telling the bank what they need to assess the application, refusing to provide documents, failing to act in a timely manner and being generally rude, abrasive, and uncooperative. The beauty of this strategy is that lenders will find reasons to say no, and the applicant can snatch failure from the jaws

to calculate an accurate split between the parties, with the software producing detailed reporting for transparency and auditing purposes.

The operator also needs to produce a “3-Way Balance”, which is essentially a summary of what transactions have transpired within the trust account during any given period, generally a calendar month. No funds should ever be dispersed from a trust account unless it has been fully reconciled, with all three numbers on the report matching.

These numbers summarise funds received, funds paid out and funds remaining in the trust account at the end of the reconciliation period.

The business owner also needs to send detailed statements to the owners of the accommodation property, outlining how the funds received from any guest or tenant have been applied and dispersed.

That’s pretty much it, a basic introduction to the term Trust Accounting!

of success. It takes a special person to execute this plan, albeit they walk among us.

As always, I’ll leave you with a quote. This one courtesy of Peter Sellers playing Inspector Clouseau in one of the Pink Panther movies:

“No, of course it won’t be easy, but nothing worthwhile ever is. That is why I have always failed where others have succeeded.”

Footnote: For the record the ‘MD’ has maintained a fitness program in recent times that puts me to shame. Her ability to pop out of the water on a single slalom ski, while my fat bum fails completely, is a testament to my focus on failure!

By Chris de Closey, Switch Hotel Solutions

Dynamic Pricing! Two little words that can scare a lot of operators. If you’ve been in the industry for a while or even if you’ve taken a business over, you would have your ways of pricing for your business.

You may have developed (or inherited) an old-school rate sheet that shows pricing for each room, each season (low/ mid/high) and breaking down the rate depending on the length of stay. A guest calls or visits your website and they get this exact price. It’s there to make your life easier right?

Understand

You know exactly what you will be charging for each period and there is litt le guesswork needed.

This was the way the world worked years ago, but in the world today, without dynamic pricing you are leaving your business (and your future profi ts!) at a huge disadvantage. Dynamic pricing will give you the ability to maximise your earning potential, keep your investors and unit owners happy and make your business a competitive force in your market.

Dynamic pricing is easily explained by comparing it to our friends in the airline industry. When it’s quiet, or low season, you can snag an amazing deal on a flight. But travel when it’s busy? Boy, oh boy – you are going to pay for it! Book in advance you might get the cheapest price, if you choose to book last minute when the flight is almost full, you will be paying more for this flight as well.

It’s common knowledge that this is how airlines work, customers are willing to pay more to travel

Dynamic pricing

how to maximise your pricing day-by-day

at a time when the masses do. Think of your property in the same way. You should be pricing your property for a higher rate on the desirable travel periods. Give customers the opportunity to snag a deal if they lock in some travel in a longer booking window (outside of busy periods of course) as this will help you build base business. Don’t just think about dynamic pricing within your seasons either. Ensure you get into the nitt y-gritt y of the pricing for your property and understand how to maximise your pricing day-by-day. If your busiest day is a Monday (maybe you’re in a corporate-centric space), then Monday should be the highest price. Maybe you are in a leisure market and weekends are your guests’ favourite times? Well, a weekend surcharge it is!

Tracking your property’s demand patterns is much easier than it sounds as you know your business best. You understand what days you need some support and what days you can maximise. Reviewing

a daily occupancy and a pickup report will reinforce your anecdotal knowledge. When you see your occupancy rising (remember - like the flight booking out) your pricing should be increasing as well. There is more to the balancing act of dynamic pricing than just this, you need to ensure you are factoring in your competitors’ pricing as well as other things.

One of the greatest advantages of our current technologydriven world is that there is a boatload of soft ware out there to help ease the decision-making process for you. Soft ware to help you track market movement in pricing and keep you competitive. There is soft ware to keep an eye on your competitors’ pricing and then there are some amazing benchmarking services as well. Most of these diff erent soft ware options won’t break the bank, some are even free, but it will give you a level of data that you would not have seen before.

As Chinese philosopher Lao Tzu once said, “The journey of a thousand miles begins with a single step”. Take the plunge into dynamic pricing, both your business bottom line and the owners in your lett ing pool will thank you to no end.

Not sure where to start?

Try focusing on your busiest days first!

Airbnb’s 2024 list of preferred partners is out and Resly was named a Preferred partner!

We’re honoured to be one of the select few to receive this status as a nod to the quality of service we provide.

How to be EV ready in your strata building

By Angelique Mentis, Director, thatsMYspot.com.au

Strata communities are realising the importance of adapting to support sustainable living.

A significant part of this shift involves Electric Vehicles (EVs). This article aims to guide strata community members through the process of making strata buildings EV-ready.

New regulations for EV charging in strata

As of October 2023, the National Construction Code in Australia mandates EV charging access in all newly constructed strata buildings. For new builds, this is relatively straightforward, but retrofitting existing buildings is more complex. It involves careful planning, not only for installing charging points, but also for ensuring that the electrical infrastructure, power load

management, and billing systems can support EVs.

Understanding EV readiness

Being EV-ready means more than just installing EV chargers. It requires preparing your building with the right electrical and structural support for EV charging.

Key EV challenges for strata buildings

Existing strata buildings face some challenges:

Addressing the limited number of parking spaces

With the increasing adoption of EVs, strata communities must reconsider their parking strategies, especially in buildings where parking space is already scarce. The challenge is accommodating the growing need for EV charging stations without worsening the existing parking shortage.

Common property areas within strata buildings are often considered suitable for EV charging stations. However, retrofitting these areas requires careful planning to minimise disruption to existing parking arrangements and ensure equitable access for all residents. Additionally, it’s crucial to address or prevent ICEing (unauthorised parking in EV charging bays).

The phenomena of ICEing and range anxiety

Strata managers must understand ICEing and

range anxiety when planning EV charging strategies.

ICEing: This occurs when nonEV (or Internal Combustion Engine) vehicles occupy EV charging bays, hindering access for EVs. It also includes situations where EVs park in dedicated charging bays without actively charging, known as “hogging.” Misusing these bays for general parking can be problematic.

Range anxiety: This is the fear of running out of charge before reaching a destination or the next charging station. Addressing ICEing is essential to prevent range anxiety among strata residents, ensuring a smooth transition to EVs.

Tackling the challenges for better EV adoption

ICEing is not only inconvenient but also discourteous. It’s a barrier to effective EV adoption and demands proactive measures. Addressing ICEing requires vigilant enforcement such as parking barriers and adopting parking systems.

Strata managers must implement clear policies regarding the use of EV charging bays and provide a reliable network of charging stations to support the growing number of EV users.

Upgrading electrical infrastructure for EV charging in strata

Introducing EV charging facilities in strata buildings requires changes in power consumption measurement. Many existing buildings lack

the necessary electrical infrastructure, which may necessitate upgrades. The size and cost of these upgrades vary, depending on factors like the building’s age, size, and anticipated power consumption due to EV adoption. Evaluating the existing electrical system’s capacity, identifying constraints, and carrying out necessary enhancements are crucial for a smooth transition to EV-friendly infrastructure.

Streamlining cost allocation and billing for EV charging in strata

Developing an effective strategy for billing and cost allocation can be complex.

Effective cost allocation requires meticulous tracking. Strata buildings can track individual EV charging usage by enhancing building parking systems with smart parking bollards. Often, strata managers are responsible for managing these costs. Key considerations include tracking individual usage, handling shared expenses, and determining fair ways to reimburse the strata corporation for electricity.

Balancing resident needs

Strata buildings must balance the needs of both EV and non-EV owners for parking. Conducting resident surveys and fostering open dialogue can help create a collaborative environment where diverse needs are understood and addressed. Engaging residents in decision-making

ensures equitable parking availability for all, regardless of their vehicle type.

Regulatory and compliance considerations

Adapting to the EV trend requires understanding and complying with various regulations. This includes local building codes, council regulations, electrical standards, and safety protocols. Consulting with experts and regulatory bodies can offer valuable insights for seamless integration of EV charging facilities.

Proactive planning and collaboration

Proactive planning and collaboration are essential to tackle the complexities of EV charging installation. Customising solutions can make the process more effective. By implementing EV charging stations, strata buildings enhance amenities, resident satisfaction, and contribute positively to environmental sustainability. EV readiness goes beyond regulatory compliance; it’s a step towards a greener, more sustainable future.

How to be EV ready in six steps

Let’s examine more closely practical steps and guidance, empowering strata communities to seamlessly adopt EV charging.

Step 1: Educating the community on EV benefits

The initial phase of EV readiness revolves around enlightening the community about EV benefits. This includes spreading knowledge on environmental advantages and cost efficiency through forums and workshops, thereby nurturing a collective drive towards eco-friendly mobility.

Step 2: Assessing building needs

A critical step is understanding your building’s specific requirements. The simplest way to do this is to start by conducting surveys to ascertain existing:

• Parking availability.

• Current electrical infrastructure.

• Number of resident car owners and existing EV users.

• How many residents drive EVs now?

• How many residents are considering EVs, and when?

• Building’s existing electrical capacity and load.

• Assessing current and projected future demand for EV charging.

• Current and future demands for EV charging.

Appointing a sub-committee within the Owners’ Corporation can streamline this informationgathering process.

These types of surveys will help you profile current patterns and behaviours around driving, parking and EV charging. With this very useful and validated information, you can then start to plan with a strategy specifically suited to your strata building’s requirements.

Step 3: Planning and designing EV infrastructure

With a clear grasp of your needs, it’s time to consult specialists in EV infrastructure and electrical engineering. Their expertise will simplify the planning phase, focusing on elements like metered circuit boards, load management, charger selection, billing systems, safety, and future-proofing technologies.

Step 4: Establishing effective policies

As strata managers, it’s crucial to implement clear and comprehensive policies to ensure the efficient operation of your EV charging infrastructure. Here are key guidelines to consider:

Fair access to charging bays:

• Implement a system or policy ensuring fair access to limited EV charging bays.

• Consider using parking bollards to reserve EV charging spots, ensuring they’re available for those who book them.

• Prevent the misuse of charging bays for

regular parking or ICE’ing (Internal Combustion Engine vehicles occupying EV spots).

Defining responsible charging behaviour:

• Determine guidelines for EV charging usage, such as whether EVs with 80 percent or more charge should be allowed to top up if others are waiting.

• Develop a clear understanding among residents about responsible and considerate use of EV charging facilities.

Billing for EV charging:

• Establish a transparent system for billing the power usage from common property EV chargers.

• Consider individual usage, shared expenses, and reimbursement methods to the strata corporation for electricity consumption.

Addressing ICEing in EV charging bays:

• Create policies to prevent non-EV vehicles from occupying charging bays.

• Consider implementing measures to enforce these rules, either preventative like parking bollards with a booking system, or punitive penalties and fines (much harder to enforce and more administrative load).

Transparent communication:

• Clearly communicate all policies and guidelines to residents.

• Ensure residents are aware of their responsibilities and the operational aspects of the EV charging infrastructure.

By setting these policies early and maintaining open communication, you can create a harmonious environment in your strata community. This approach not only streamlines the EV charging process but also fosters a sense of collective responsibility and respect among residents.

Step 5: Installation and deployment of EV chargers

Selecting the right EV supplier, whether an independent contractor or a specialist

operator, is essential. Drawing insights from other installations and seeking expert advice for complex projects is advised. For both owners’ corporations and individual tenants, obtaining detailed quotes and coordinating with the building management for installation are key steps. Distributing informative resources helps in educating the community about new EV charging facilities and policies.

Step 6: Monitoring and maintenance

Establishing a system for regular monitoring and maintenance of the EV charging infrastructure is crucial. Utilising software tools for usage tracking and adjusting resources as needed ensures optimal performance. This responsibility can be managed by the building or facilities manager, or a volunteer from the Owners’ Corporation.

Embracing EV readiness

Adopting these steps enables strata communities to support EV owners effectively and contribute to a greener future. Integrating systems like automatic parking bollards enhances both EV readiness and parking management in strata buildings.

Managing EV charging and parking challenges

Strata managers often face challenges in managing parking spaces, especially with the integration of EV charging infrastructure. Solutions like smart parking bollards address these issues, ensuring fair access to parking and EV charging bays, and preventing non-EV vehicles from occupying these spots. These systems promote a harmonious living environment and contribute to sustainable urban living.

Conclusion

Adapting to EV readiness in strata buildings is a journey of education, planning, policy implementation, and technological integration. By following these steps, strata communities can play a significant role in advancing sustainable transportation, making strides towards a greener, more efficient, and harmonious living environment.

A bold new era of property solutions in accommodation

In a momentous occasion that marks both celebration and progress, RAAS Property Group, a trailblazer in the brokerage of Management Rights and Residential real estate, proudly announces its relaunch and rebranding as Ras360 Property Solutions. This transformation is not merely a change in name, but a testament to our unwavering commitment to providing comprehensive property solutions that transcend boundaries.

As we commemorate our 21st birthday, the transition to Ras360 symbolises a new chapter in our journey—a chapter characterised by innovation, growth, and a renewed focus on meeting the diverse needs of our clients.

Christopher Jones, Managing Director and owner of Ras360 encapsulates the spirit of this transformation, stating, “Our decision to diversify into other asset classes underscores our dedication to offering holistic property solutions. We are excited to build upon our legacy of excellence while embracing new opportunities for innovation and expansion.”

At the helm of this exciting venture is Nathan Eades, a trusted industry leader and the newly appointed National Director of Accommodation Sales.

Alongside Director of Management Rights, Robert Collins, and joining stalwarts Paul Mueller and Kerrie Lush, Nathan will drive the sales division of Hotels, Motels, Pubs, and Caravan Parks. This strategic move reflects our commitment to growth and our determination to provide diverse property services and solutions to the market.

A dominant seller of permananent, holiday and off the plan management rights businesses for over 21 years.

Investment and residential sales specialists selling over 350 units and townhouses every year.

Professional accommodation business sales advisory spanning the east coast to sell hotels, motels, pubs and parks.

A powerful suite of solutions to assist onsite manager’s to market their sales and rentals to an actively refreshing database of buyers. Importantly, Ras360 does not operate a rent roll, yet attracts over 400 rental enquiries to our managers every week.

Joining Nathan in this exciting venture are well known industry professionals, Malcolm O’Farrell and accommodation expert, Joel McCartin. Malcolm brings a wealth of operational expertise spanning more than twenty years including ownership and management of diverse hospitality assets, covering both the Management Rights and Facilities Management sectors, as well as residential property management and real estate sales.

Joel McCartin’s journey through the dynamic landscape of hospitality, liquor and tourism has equipped him with a comprehensive understanding of the industry. From managing international hotels to bustling gaming pubs, his wealth of experience span’s locations from North Queensland to Victoria, providing invaluable insights into various facets of the sector.

Julia Kent, Growth Manager at Ras360, has been instrumental in spearheading this transformation, focusing on innovation, customer-centricity, and supporting the group’s expansion. Julia affirms, “This rebrand is more than just a cosmetic change; it’s a reflection of our commitment to pushing boundaries and challenging the status quo in property. “In the spirit of our free-thinking and fast-moving ethos, we’re also thrilled to launch a new website with Partner Portal to seamlessly connect our team from anywhere in Australia.”

But our achievements extend beyond the realm of rebranding. Ras360 has consistently demonstrated excellence in the residential real estate sector, earning accolades from industry leaders and clients alike.

Ranked as the 4th largest agency in Queensland by RealEstate.com (6 months to date), we were also honoured to receive a slew of awards at this year’s Rate My Agent annual awards, including the prestigious Top 5 Agent in Brisbane awarded to Mathew Anderson. These accomplishments speak volumes about our dedication to delivering exceptional results to our sellers and Management Rights partners.

As we embrace this new chapter, Ras360 remains committed to our core values of innovation, integrity, and excellence. Our expansion into diverse asset classes is a testament to our ability to adapt and evolve in response to the changing needs of the market.

With a renewed sense of purpose and a commitment to pushing boundaries, we invite you to join us on this journey of growth, innovation, and success.

Welcome to Ras360 – a new era of property solutions, where possibilities are limitless, and success knows no bounds.

Joel McCartin

Malcolm O’Farrell

Nathan Eades

Repainting project:

More than just a pretty face for your property

By Lynda Kypriadakis, The Diverse Group of Companies & DPX Projects

No matter where your strata property is located, or what size – large or small –eventually the common property will need repainting. It’s usually one of the biggest outlays the body corporate will spend, so it’s worth getting it right.

Repainting is not just an exercise in aesthetics. It’s not just about making the building look prett y, or about keeping on-trend with the latest paint

Resist the temptation and prioritise the remedial works before moving on to the painting

colours. Repainting is about managing the structural integrity of the building and is an important routine maintenance requirement to prevent water ingress into habitable and structural areas.

Done right, the repainting project will provide protection and a superior appearance for years to come, while optimising the value of your asset.

If done poorly, it will be a great financial outlay for a disappointing result that fails and looks unsightly within a short time.

It’s important to remember that the external paintwork forms a protective barrier to prevent moisture ingress. Fundamental to the success of that protective barrier is the condition of the substrate being painted. If the walls of the building are riddled with cracks, spalling and other defects, then no amount of painting is going to fi x that! If your balcony waterproofing has failed, then no amount of painting will stop the leaching and staining coming from the balconies. While it is exciting and preferable to rush toward the repainting while ignoring the non-sexy remedial works

that need tackling, the cautionary tale is to resist the temptation and prioritise the remedial works before moving on to the painting. Therefore, the first step in the repainting project is not to call a painter for a quote, but to get the paint supplier out to assess your substrate condition and provide advice about maximising your prospects of success by recommending whatever repairs are necessary before preparing a site-specific paint supply specification for the painting.

A good quality paint supplier will be happy to attend your property to provide this substrate condition assessment and specification process. For those of you who aren’t aware, quality paint suppliers off er a myriad of supportive services for bodies corporate, including:

• Site inspection and report on substrate condition.

• Specification of sitespecific paints and surface preparation requirements.

• Site inspections during the painting process – to

ensure the applicator is preparing the surfaces properly and using enough paint/coats.

• Paint volume assessment service – to ensure the painter has ordered sufficient paint to properly do all the coats required under the specification.

• Warranty certificate –usually for 10 years on the performance of the paint.

Whoever your paint supplier is they should be able to assist you with all these things to ensure a smooth running painting project – including warranty claims beyond practical completion.

While I am a professional project manager and you might think I am giving away trade secrets, I realise that the majority of bodies corporate do not engage project managers when doing their repaint projects as committees prefer to manage the painting project themselves, so this information is intended to assist those bodies corporate that prefer to self-manage.

Reliance on the painting contractor for independent and best-for-building advice is fraught with danger. I would suggest that you take the painter’s advice with a grain of salt and get proper confirmation from either an independent project manager or the paint supplier. At the end of the day, the painter only wants to sell you what they will make the

most profit on, which may not be the best for your building.

By going to the paint supplier first, you will get proper advice about substrate conditions, good information on which paints are the best fit for your building and location, and what is necessary to obtain a certified warranty. Once the paint supplier has done the site visit and prepared the site-specific specification you can then use it as the tender document for the painters to quote on.

Another tip is to keep an eye on the warranties offered by the painter when they give you their quote. Make sure the warranty offered is included in the quote document.

There are two types of warranties on offer for any painting project:

• Supplier or product warranty – this is the warranty offered by the paint supplier for the performance of the paint product. It’s a guarantee against fading and other performance-related matters to do with the paint and generally is offered for somewhere between seven to 10 years. Product warranties are conditional upon the substrate being properly prepared and the applicator putting the paint on properly.

• Applicator warranty – this is the statutory

warranty imposed by the trade contractor licensing authority on the painter. It’s the trade contractor’s warranty and usually lasts 12 months.

So what use is a 10-year product warranty if the applicator warranty is only one year? Good question!

The best outcome for the property is to require the applicator to match the supplier’s product warranty when putting their quote forward for the works. That way the painting contractor will need to take more care to diligently follow the supplier’s specifications to the letter to ensure the paint will last for the full 10 years.

Some customers hold concerns that obtaining an extended warranty from the painter for 10 years (versus the mandatory 12-month warranty) will impose extra costs on the works. This is utter rubbish! The truth is that if the applicator follows the specifications issued by the paint supplier, the works will last for the warranty period stated by the paint supplier. And finally, don’t forget to ensure the supplier comes out to the site to conduct random inspections of the applicator’s works during the painting process. The supplier should provide site inspection reports to confirm the applicator is properly preparing the substrate

and using appropriate coats of the correctly specified paint. We don’t want our painting contractors to buy cheap paint and pretend it’s the good-quality paint specified! We want the paint supplier to check this out during the project and ensure the proper preparation is being done.

Given that the two main reasons why paint supply warranties are voided are: failure to prepare the substrate properly; and failure to apply the correct thickness of specified paint. We want the paint supplier to help us measure that the applicator is doing the “right thing”. Having the paint supplier measure the volume of paint purchased for the project and doing site inspections to check the applicator’s preparation and coating works is your best guarantee of a great job and a reliable warranty certificate.

Don’t forget that you must ask for the warranty certificate, and make sure it is fully signed by both the paint supplier and the applicator contractor when you receive it. If it’s not signed, then it is not worth anything!

For further information on self-management of painting projects in strata properties refer to the ABMA Guide to Managing the Paint and Waterproof Membrane Warranty available online here: - https://abma.org.

au/abma-purchase.php

© Adobe Stockstock.adobe.com

Work smarter, not harder.

Introducing Resly - the MVP of hotel management! Trust account compliant, with a powerful property management system, seamless channel manager, and commission-free direct booking engine, Resly is the ultimate all-in-one solution for hoteliers.

And the best part? Resly is 100% cloud-based, so you can access it from anywhere, at any time, on any device

Don’t leave home without it

By Stephen West, Interline

Embarking on a journey, whether it’s a leisurely vacation, a business trip, or an adventurous expedition, is a thrilling experience.

However, amidst the excitement of exploring new horizons, the importance of safeguarding your trip with a comprehensive travel insurance policy should never be underestimated. In the unpredictable landscape of travel, unforeseen events can disrupt even the most meticulously planned itinerary, making travel insurance an essential investment for every globetrotter.

Unforeseen medical emergencies: Your health is priceless

Medical emergencies can strike at any time, and being in an unfamiliar destination can add

Unforeseen events can disrupt even the most meticulously planned itinerary

an extra layer of stress. Travel insurance provides peace of mind by covering unexpected medical expenses, including hospital stays, doctor’s fees, and prescription medications. Additionally, some policies offer emergency evacuation coverage, ensuring you receive the necessary medical attention, even if it means transporting you to a different medical facility or even back home.

Trip cancellations and interruptions: Safeguarding your investment

Life is unpredictable, and circumstances beyond your control may force you to cancel or cut short your trip. Whether it’s a family emergency, sudden illness, or unforeseen work commitment, travel insurance can reimburse you for nonrefundable expenses such as flights, accommodations, and pre-booked activities. This financial safety net ensures that you don’t bear the full financial burden of a disrupted travel plan.

Lost or delayed baggage: Minimising inconveniences

Misplaced or delayed luggage is an inconvenience that can quickly turn a dream vacation into a nightmare. Travel insurance typically covers the cost of essential items needed while waiting for your belongings to catch up with you. In some cases, policies also offer reimbursement for permanent loss or theft of luggage, allowing you to replace your belongings without a significant financial setback.

Flight delays and missed connections: Softening the blow

Flight delays and missed connections are common challenges in the world of travel. With travel insurance, you’re not left stranded without assistance. Many policies provide coverage for additional expenses incurred due to delayed or missed flights, including accommodation, meals, and alternative transportation arrangements. This ensures that unexpected hiccups in your travel itinerary don’t result in undue stress or financial strain.

Personal liability coverage: A safety net abroad

While enjoying the wonders of a new destination, accidents can happen. Travel insurance often includes personal liability coverage, protecting you in case you accidentally cause harm to others or damage someone’s property. This aspect of insurance offers legal assistance and coverage for potential settlements, safeguarding your financial well-being in the face of unforeseen circumstances.

Natural disasters and political unrest: Navigating the unexpected

Natural disasters, political unrest, or civil disturbances can disrupt travel plans with little warning. Travel insurance provides coverage for trip cancellations or interruptions resulting from such events, ensuring that you’re not left financially stranded in the face of unforeseen circumstances. It’s a valuable safety net for navigating the unpredictable landscape of global events.

Assistance: A travel companion in troubled times

One of the often-overlooked benefits of travel insurance is the 24/7 assistance it provides. Whether you find yourself in a medical emergency, facing a travel-related problem, or needing help with lost documents, having access to round-the-clock assistance can be invaluable. It’s like having a reliable travel companion ready to assist you, no matter where in the world you may be. There are two important parts of the travel insurance policy.

1. Pre-departure, you are covered from the day you take the policy out until you depart. This is where the cancellation part is critical.

2. Once you commence travel, this is when the subsequent benefits are triggered.

While travel is a source of joy and discovery, the journey comes with inherent uncertainties. A comprehensive travel insurance policy is not merely an option but a fundamental aspect of responsible travel. It acts as a safety net, providing financial protection and peace of mind, allowing you to focus on the adventure at hand without the constant worry of what might go wrong. Safe travels begin with a well-chosen travel insurance policy—a small investment that ensures your journey remains a positive and memorable experience.

Image courtesy of Interline Travel

Travel

Caloundra resort gets $5.8 million refurbishment

Ramada Resort by Wyndham Golden Beach, unveiled the completion of a spectacular $5.8 million refurbishment of all 60 of its Club Wyndham South Pacific apartments and common area improvements for all resort guests.

A significant tourist market and the region’s largest vacation club, Club Wyndham South Pacific has close to 60,000 members and brings over 10,000 visitors to the Sunshine Coast every year through its club inventory at both Ramada Golden Beach and Ramada by Wyndham Marcoola Beach. These club members spend an estimated $22 million on the Sunshine Coast each year.

The extensive refurbishment of the club apartments encompass upgraded bathrooms, brand-new kitchens, revamped flooring, stylish furniture, and the installation of external shutters on the balconies. Each one and two-bedroom apartment has been revitalised with a fresh infusion of style, featuring a coastal-inspired theme with various shades of blue, white, and navy.

The resort also boasts a revamped pool area with new astroturf, shade umbrellas, pool furniture, and bean bags enhancing the

much-loved pool area with a slippery dip. A new pickleball court has also just opened on the resort grounds. Bikes, e-bikes, canoes, and stand-up paddleboards are now available for hire and are provided complimentary for club members. Ramada Golden Beach is managed by Wyndham Destinations Asia Pacific as a mixed-use property with Club Wyndham South Pacific apartments, hotel inventory, and private residences. Club Wyndham South Pacific is a leading holiday club in Asia Pacific.

The refurbished rooms are utilised by club members but can be accessed by the public when members choose to exchange their vacation credits for accommodation elsewhere.

Queensland Launches ‘Festival of Free’ Campaign: A FamilyFriendly Holiday Extravaganza

Families across Australia are gearing up for an unforgettable holiday experience as Tourism and Events Queensland, in collaboration with My Queensland, unveils the much-anticipated ‘Festival of Free’ campaign.

With an array of enticing offers and bonus inclusions, this campaign aims to make Queensland vacations more accessible and enjoyable for families amidst challenging times.

The Festival of Free initiative promises an assortment of holiday packages featuring complimentary flights for kids, free tours and experiences tailored for children, and enticing ‘kids stay free’ offers at a variety of premier hotels and resorts across the Sunshine State.

Patricia O’Callaghan, Chief Executive Officer of Tourism and Events Queensland, expressed enthusiasm about the initiative, stating: “We want Aussie families to be able to take that Queensland holiday even though times are tough and that’s why we, together with our partners My Queensland, dreamed up the Festival of Free.”

The Festival of Free is on sale until May 31, unless sold out sooner. There are also packages available for families, couples and other travellers without kids, including exclusive airfares and unbeatable package prices. To access the deals, visit MyQueensland.com.au.

Gold Coast tourism continues strong post-pandemic recovery

The latest findings from the National and International Visitor Survey, conducted by Tourism Research Australia, shed light on the Gold Coast’s post-pandemic recovery. Revealed for the year ending December 2023, the data highlights the city’s resilience and burgeoning visitor economy.

According to Experience Gold Coast CEO, John Warn, the Gold Coast witnessed a robust surge in its tourism sector, boasting a total visitor expenditure of $7.8 billion and welcoming 12.2 million visitors. This represents a significant 31.1 percent increase in expenditure, albeit a 13.9 percent decrease in visitor numbers compared to pre-pandemic levels in 2019.

Domestically, the Gold Coast showcased exceptional performance, surpassing both state and national averages in growth percentages. With 4.1 million domestic overnight visitors, including a noteworthy 5.9 percent increase from Brisbane alone, the Gold Coast solidified its position as a premier destination within Queensland.

Mr Warn attributed this success to strategic marketing efforts, particularly targeting Brisbane as a core market. The implementation of “Stay & Play” campaigns, enticing visitors with upcoming events and overnight stay incentives, proved instrumental in converting day trips into longer stays.

Despite the lingering effects of global events hindering the full return of international visitors, the Gold Coast demonstrated resilience by welcoming 612,000 international visitors, marking a commendable 57 percent recovery. New Zealand emerged as a steadfast supporter, contributing 200,000 visitors, while South Korea experienced an impressive 35 percent growth, reaching a record 46,000 visitors.

Image courtesy of Experience GC

Ramada Resort by Wyndham

What about Women In?

The first Gold Coast luncheon of 2024 was held at Justin Lane, it was a fabulous afternoon that saw an enthusiastic gathering of industry peers make meaningful connections over tasty canapés and refreshing beverages. Thank you to hosts — the team at Switch Hotel Solutions and appreciation to its Director, Chris de Closey for sharing his valuable industry insights. The vibes and energy in the room were at an all-time high!

The first Brisbane luncheon of the year at Iris Rooftop Bar provided breathtaking views, which certainly enhanced the overall experience. It was exciting to meet several new faces who were warmly welcomed to this networking community. A big thank you to OPAT for hosting this event and sharing invaluable insights into maintenance practices.

Brisbane Luncheon

Exciting announcement from Kelley Rigby

With a fresh approach to real estate and management rights, in an exciting new development, Kelley Rigby is thrilled to announce she is teaming up with her husband Scott, introducing Rigby Property Group.

With deep community roots, Kelley’s experience in management rights since 2011 and Scott’s background in construction and leadership, this partnership brings a dynamic blend of skills to the table.

Scott is eager to take this leap, bringing his analytical skills and innovative thinking to the forefront. He’ll focus on guiding investor clients to recognise the inherent value in their offerings. For Scott, working alongside Kelley in an industry she’s deeply passionate about, while being at home with their family, fulfills a long-held dream. He told us: “To come home, embark on this entrepreneurial journey with my wife, and spend more time with our children has been my aspiration for years. Kelley has always talked about her love for the management rights industry, so I thought why not see what all the fuss is about?”

The Rigby family recently welcomed baby Ranger, and Kelley remains steadfast in her commitment to family, management rights, sales, and supporting managers and communities.

She said: ‘Combining my love for sales with management rights is in my DNA. Having Scott’s unwavering support and presence at home has given me the courage to further pursue my passion for this industry. We are ready to take it to the next level!

“At Rigby Property Group, our motto, ‘Making Real Estate Feel Different,’ embodies our dedication to warmth, inclusiveness, and genuine connections, challenging traditional norms.”

Accommodation Industry Golf Series

Round Two of the 2024 Accommodation Industry Golf Series will be held at the Maroochy River Golf Club, Sunshine Coast on Friday, June 7, with a shotgun start at Noon. It’s a Texas Scramble competition, with rules set by Mike O’Farrell on the day.

The deal includes golf fees, a cart, a free drink and a sandwich on the course, sponsored golf holes, giveaways, stacks of prizes, a burger meal after golf and so on … You

Mike O’Farrell reports on an “Assignment Discussion” facilitated by Management Letting

Rights Services (MLRS)

“The group had a meeting at Riverside Hotel to discuss assignments and talk through the growing requirements of bodies corporate in assessing new managers.

“Almost all bodies corporate are now engaging ‘specialists’ to conduct the assignment interview. We talked through

prequalifying buyers and even engaging with the body corporate before due diligence and accounting verification expenses were paid out.

“It was an excellent meeting with the attendees gaining a full appreciation of just how important the assignment process is.”

can organise a team or get added to a team of four.

The cost for the day is $120, with extras provided by the event’s generous sponsors.

Major Sponsors: Watt Utilities, Mahoneys, KONE, Platinum Electrical & Air, McAdam Siemon Business Advisors, Rochele Painting, Nator Constructions, RBC Group, ResortBrokers and SSKB.

Supporting sponsors: The House of Golf, ARAMA, REI Cloud, Resort News & Letts Group.

For full details and to register contact Tracey Taylor taylor77@bigpond.net.au

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.

Scott & Kelley Rigby

Emerald Park Motel, Emerald QLD

Another successful sale for Michael Philpott and Tourism Brokers. Kapil Patel is the very proud freehold owner of Emerald Park Motel. The prior owner, Kay Trembath is looking forward to a new challenge and residing in Hervey Bay, where she will be available for short-term Motel Relief Management and travel. Kay has owned and operated a number of motels over the years and is proud of what she achieved with Emerald Park. Kapil looks forward to the continued growth of a very strong business and growing his portfolio further when opportunities arise.

Burke & Wills Motor Inn, Moree

Mike Wang, Michael Philpott and Jarrad Eden (Vendor’s rep)

Tourism Brokers Director, Michael Philpott , welcomes new owner, Mike Wang, to the Burke & Wills Motor Inn, Moree. Long-term Industry people, the property will remain under management. With a strong industry background, enhancements to the property are planned.

Sales Report

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

MANAGEMENT RIGHTS

Gold Coast

Cienna Varsity Ridge KPK Management P/L Varsity Lakes RB

Northshore Bach Management P/L Palm Beach RB

Brisbane

MacArthur Chambers MCTY Investment Group P/L Brisbane RB

Oxy Stones Corner Y & K Mi en P/L Stones Corner RB

Spring Hill Gardens Mingze Yuan Spring Hill RB

Republic Apartments Zenith Realty Solution Brisbane RB

Sunshine Coast / Wide Bay / Fraser Coast

Beach Breakers Joel and Bec Risson Sunrise Beach RMS

Seapoint John Luxton Kings Beach MRS

Central Queensland

The Edge & The Empire Prestige Residential Rockhampton City RB

North Queensland

Pinnacles Resort & Spa PV North P/L Airlie Beach RB

Grand Mercure Apts Magnetic Island At One Bright Point P/L Magnetic Island RB

Victoria

Bond Quarter Stellar Asset Management P/L West Melbourne RB

MOTELS & OTHER

Queensland

Sarina Motor Inn Singh Sarina CRE

Blue Topaz Caravan Park Nicks Stanthorpe CRE

Riverside Caravan Park Ingar Bli Bli CRE

Beachside Motor Inn FDJ Distefano P/L Hervey Bay TB

Emerald Park Motel Atlantis Resort P/L Emerald TB

Biloela Countryman Motel Pathfinder P/L Biloela TB

Boonah Motel Rockroot Enterprises P/L Boonah RB

New South Wales

Park Beach Resort Motel Nahal Coffs Harbour CRE

Burke & Wills Motor Inn M. Wang Moree TB

Quest Liverpool LAG Corporation P/L Liverpool RB

Newell Highway Caravan Park Voreios P/L Parkes RB

Tasmania

Wintersun Gardens Motel Illoura Properties P/L Bicheno RB

South Australia

Lake Albert Motel Brendan Haynes & Jenny Greenwood Meningie RB

Victoria

Country Road Motel Aussie Modern Solar St Arnaud TB

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

AUSTRALIAN BROKERS

NEW ZEALAND & PACIFIC ISLAND BROKERS OVER 1100

SUNSHINE COAST

LOOKING FOR HOLIDAY MANAGEMENT RIGHTS

BEACHSIDE RESORT, MAROOCHYDORE

This management rights complex offers an array of expansive 1, 2, and 3-bedroom apartments, meticulously maintained, this expansive manager’s apartment offers three bedrooms and two bathrooms. Unit may be separated from business.

Nett Profit $520,000 | Real Estate $1,245,000 | Business $2,650,000 | Total Purchase Price $3,895,000

POPULAR BEACHSIDE RESORT, MAROOCHYDORE

Rarely do properties with this location and resort amenities become available. Positioned in the holiday destination of Maroochydore, this family oriented high rise, having solid repeat business is one to attain for your portfolio. Management unit positioned on the ground floor, beautifully renovated with high ceilings and ample natural light, offering a comfortable and inviting living space. Add to this a large balcony for added relaxation. 2 bedrooms and a study (currently used as a bedroom) with 2 bathrooms. The spacious office is attached to the residence and is on title along with 3 basement car spaces and a spacious lockup storage/cage.

BEACHSIDE RESORT, MOOLOOLABA

This comprehensive management rights package encapsulates elegance, starting from the impressive foyer to the expansive and refined apartments that offer stunning ocean views. The property also boasts state-of-theart facilities, adding to its allure. The manager’s dwelling is an opulent two-bedroom, two-bathroom apartment, fully furnished for a luxurious living experience.

Nett Profit $339,346 | Real Estate $975,000 | Business $1,695,000 | Total Purchase Price $2,670,000

Nett Profit $579,280 | Real Estate $800,000 | Business $3,184,000 | Total Purchase Price $3,984,000 LOOKING TO

New beginnings:

Mei and Mani’s Little Cove experience

By Grantlee Kieza, Industry Reporter

Mei and Mani Taare swapped their Wellington, New Zealand lives for a new adventure on the Gold Coast, settling into the management rights at Little Cove resort in Currumbin. Their decision wasn’t impulsive; it took years of research and exploration before they found the perfect fit.

For them the allure of Little Cove was undeniable – with its stunning water views, superspacious apartments, and proximity to the Gold Coast’s best beaches and attractions, it seemed tailor-made for them.

The couple, deliberate in their approach to finding a management rights business, considered factors like financial return, the state of the body corporate relationship, and even the quality of the manager’s unit within the complex. Resort News recently caught up with them to discuss their twoyear tenure as the resident managers at Little Cove.

Mei told us: “We lived in Wellington, New Zealand where, for the last 10 years, we were busy senior government contractors. I come from a communications background and Mani comes from a project management/ building background.

“We’d been holidaying in Queensland for a decade, sometimes twice a year, and heard about management rights on our visits. We were convinced to make the move after experiencing an exceptionally beautiful holiday in Coolangatta only to return to a bitterly cold Wellington day complete with freezing wind and snow. That was it! Decision made.”

Mani explained the attraction of the industry: “Management rights would allow us to live just about anywhere – we wanted to live in a warm climate by a beautiful beach – and it allowed us to have a business in the property where we lived. For us, it was a perfect business.”

With its spectacular views, spacious apartments, excellent resort facilities and access to all the best of the Gold Coast’s attractions, Little Cove was an idyllic property. P44

Mei and Mani Taare

Resly, steady, go at Little Cove

Mei and Mani Taare credit Resly software for helping them survive their first few difficult weeks in management rights at their Gold Coast resort, Little Cove, and have thrived ever since.

The couple who moved from Wellington, New Zealand to become first-time resident managers at their spectacular Currumbin home, experienced an extremely difficult handover which resulted in, among other things, the loss of the longstanding Little Cove Resort phone number, the business website address, and the Property Management System.

But Resly saved the day, and two years later the couple can’t speak highly enough of the organisation which takes its name from the abbreviation ‘Reservations easily’.

“We inherited a booking system that included writing everything by hand into a book!” Mei said.

Mani took up the challenge and with his ‘research hat’ firmly in place, considered the services of several PMS providers.

After speaking with Resly owners, Sam and Rico, Mani found their technical innovation

and simplicity an excellent combination and Little Cove has been with them ever since.

“It’s basically the only management system we’ve ever used. They were just fabulous when we started out, and they’ve taken care of us ever since.

“It does exactly what you need

to make your management rights business work smoothly and with very little stress.”

Mei said the Resly system “was very easy to learn – even for someone like me who is not really an IT person. We think they’re fabulous.”

Founders Sam Steel and Rico Chen, who launched Resly four years ago, say their mission was simple – to enable and empower the management rights industry through technical innovation in a way it had never experienced before. They say that like many of their clients, they once had problems working with outdated, complicated software that made it difficult to run a trust account. They wanted to build a property management system that had powerful features, yet was simple to operate, and they created Resly specifically for the management rights industry.

Mei and Mani Taare

P44

However, finding it was not a simple process.

The couple first came to Australia to buy a management rights business on the Sunshine Coast four years ago, but COVID hit and put everything on hold. While this was a setback to their plans, the couple took the opportunity to do more research and ensure they were committing to the right property.

“We must have looked at 40 or 50 properties during our search,” Mei said. “We looked at properties in Brisbane and from Airlie Beach to Coolangatta before Little Cove came up for sale.”

Their research meant they were armed with a firm list of criteria that the business had to meet, including the financial return, the body corporate relationship, and critically, where the couple would live in the complex.

“Most of the businesses we looked at had a manager’s unit that was the worst in the building,” Mei said. “It didn’t matter if the property was on a beautiful beach, on the Brisbane River, or in any other stunning location, the manager’s apartment invariably was ugly with a view of the back wall, the driveway, or the rubbish bins! I didn’t want to compromise on the quality of our home.

“And Little Cove wasn’t like that.

Congratulations

Leaders and experts in Management Rights

The unit was spacious with exceptional river and sea views too. Okay, it was in great need of a complete renovation but with Mani’s building background we weren’t worried about that. For me that was the final box ticked and one of the main reasons why we bought this business.”

Mani added: “The apartment was crucial, but of course, the financial return was the priority. We wanted to make sure we were investing wisely. The Little Cove business allowed us to buy a piece of real estate that had potential and a business we believed would appreciate in value.”

There are 36 units in the Little Cove complex and Mei and

Mani have nine in their letting pool, a mix of permanent and holiday letting.

“It’s a good size for us,” Mani said. “About 75 percent of the people here are owner-occupiers who, like us, really appreciate this beautiful location. We take a great deal of satisfaction in our work at Little Cove and treat it—the swimming pool, buildings and gardens—as an extension of our own home.”

During the hunt for Little Cove, some great lessons were learned. Mani explained: “I would call some of the businesses we looked at distressed,” he said. “The agreements had deteriorated so much. P48

‘SharonFloodandherteamarefabulouslegalprofessionalswhohelped us with the purchase of Little Cove. They’re a great group of people to work with and two years later they continue to keep an eye on us, which we greatly appreciate. Mani and I highly recommend Flood Legal.’

– Mei & Manihera Taare, Little Cove Currumbin

Mei and Mani. Flood Legal are proud to partner with you as your trusted legal advisors. Thank you for your kind words.

Kate is great at Li le Cove

SSKB Strata Manager, Kate Rawnsley has been a guiding hand for Mei and Mani Taare as new resident managers at Currumbin’s Li le Cove resort. The couple took over the property two years ago and say that a er a di cult handover from the previous owners, Kate and the SSKB strata team were fantastic support.

Mani said Kate has always done a great job for Little Cove, keeping everything on track and informing everyone about all the strata regulations.

“Kate’s primary role is guiding our body corporate committee,” Mani said, “and ensuring we’re given the right guidance as managers. She’s done that very well.”

“With her deep knowledge of

the industry, Kate’s support has been invaluable,” Mei said.

Kate started working with Mei and Mani in March 2022 and says the key to building strong relationships with resident managers is, “to be heavily involved, listen to what they say, and try to help as much as possible.”

“It was a tough start for Mei and Mani,” Kate said. “For me, it was simply a matter of always being available because at the start there was a lot for them to learn about the industry, especially some of the more detailed bylaws.

“I advised them to work closely with the chairperson, the secretary and the treasurer at Little Cove because they were very knowledgeable, having been on the committee for years.”

To further assist their resident managers like Mei and Mani, SSKB, a pioneering force in strata management, has just launched the latest version of its SSKB Strata app. It’s a leap forward in technology — empowering body corporate members, committee members, and building managers with a suite of advanced features and enhanced functionalities, designed to revolutionise the management of strata properties.

Daniel Herbert, the CEO of SSKB, said his company was committed to pushing the boundaries of innovation in strata management.

“With this update, we aim to empower our clients with the tools they need to navigate the complexities of strata management seamlessly,” he said.

Brendan McGrath, Head of Innovation and Technology at SSKB, said the company had taken on board feedback from its clients on how the existing app could be improved to simplify and transform the strata experience.

Kate agrees that the SSKB Strata app is invaluable, providing SSKB communities with unparalleled efficiency, transparency, and convenience in managing their properties and access to vital information at the press of a button.

Kate Rawnsley

We dreamed it and now we’re living it

“We realised this was an important indicator of poor health in a business. We saw 10-year agreements that had whittled down to four, and 25-year agreements that only had 12 years left. It became clear that something was not right if the agreements weren’t being topped up.

“That’s one thing to watch out for when you are new to the industry because no one will tell you about toxic relationships the outgoing managers may have with residents or the body corporate committee. But it’s important to understand that these unhealthy relationships caused by a loss of trust, will impact the new manager no matter how competent and resourceful they may be. They will start the business on the back foot. Negative comparisons will be made and it will take hard work first and then courage to challenge the usually unfair grizzles and complaints.”

Mei and Mani also advise newcomers to the industry to consider holding funds back at settlement until every condition in the handover agreement has been met.

“Our handover was like being run over by a truck,” Mei said. “It was painful.”

“Despite all our research and knowledge, we were unprepared for trouble from the out-going managers. Once the sale went through, they didn’t care. And when they disappeared three or four days later, they took,

among other things, important business resources such as the Property Management System (PMS), the longstanding phone number for the property, the website address and wifi modems. Consequently, we lost the phone number for Little Cove and a lot of IP that should have come with the business.”

In the handover, Mani and Mei were left with no historical data, meaning they had to build Little Cove’s PMS from scratch. Drawing on their background in management they achieved this and were also able to rid the system of some bad habits – such as processing all the holiday bookings by hand!

Mani picks up the story: “Although we got our system exactly the way we wanted it in large part thanks to Resly, it was tough for those first few months. We were running a business without any secure infrastructure or systems in place, and we had guests arriving. It was a steep learning curve, bit traumatic and challenging but we’ve never regretted the move. We consider ourselves incredibly lucky to wake up every morning to this beautiful place we call home.”

Mei and Mani also praise

ARAMA for its dedication supporting the work of people like them, the managers who work at the coal-face of the management rights industry. The organisation provides valuable training, support and advice – all of which Mani and Mei have received. “They look after everyone in the management rights industry,” Mani said.

He describes management rights as “an excellent business in many ways” because you don’t have to buy stock, you have a guaranteed income with the caretaking agreement, and you can secure real estate in a wonderful location and build up the letting business.

Mani and Mei agree it’s been a wonderful journey to Little Cove, one they are glad they made and keen to share with others.

Mani likes to ask guests, friends and family: “Did you ever think you’d wake up every day to one of the most breath-taking views in the world, find yourself welcoming guests to your amazing home daily, and enjoying the friendship of a wonderful community of other lucky sods? Well, we dreamed it and now we’re living it. Our only regret, stupid us, we should have done this sooner!”

10% discount for Resort News readers when booked direct

Ph: 0468 465 165

info@littlecovegoldcoast.com.au

36 Duringan Street, Currumbin Qld 4223

www.littlecovegoldcoast.com.au