Resort Management Sales Industry Blog

A new regime of disclosure in connection with retail leases commenced on 1 January 2011 across New South Wales, Victoria and Queensland. Prior to this, disclosure requirements differed between the States, increasing the administration for lessors who operated across State borders. The aim of the cross border changes is to enhance the consistency of the retail tenancy regulatory framework and reduce administrative burden. In Queensland, the disclosure statement has changed substantially from the prior version. Lessors are now required to disclose more information and include more detail than previously required.  Click here for more information.

The recent heavy rain and consequent flooding has caused devastation in many regions across Queensland.  REIQ members have reported damage to a high number of properties from their rent roll.  Many will require complete refurbishment.  It is important that members in affected areas, and throughout the State, are aware of their obligations and the responsibilities of lessors to tenants in natural disaster situations.  The REIQ has developed a fact sheet detailing these obligations along with a checklist to assist members.  Click here to view the fact sheet.

On 1 January 2011, a national law for fair trading and consumer protection was introduced - the Australian Consumer Law (ACL). The ACL applies to all sectors of the economy and to all Australian consumers and businesses.  The Office of Fair Trading will be hosting seminars across Queensland from 31 January to 14 March 2011.  These seminars will discuss business obligations and the increases in consumer protection under the new law, as well as provide an opportunity to ask questions.  Click here for more details.

You’ll need a licence to manage and let residential lots within the building or complex that you manage. The Queensland licence is called a Resident Letting Agent licence.  You must also have an agreement with your body corporate to operate a letting business, before you can get the relevant licence. When you acquire management rights, you must apply for a licence that allows you to manage lots within your scheme and collect the rent. In Queensland, the REIQ and TAFE colleges offer accredited courses for this qualification. If you can’t attend classes, you can take an accredited course by distance learning (correspondence). This is not difficult to obtain and involves a 5 day course and examination. Australian Management Sales assists its clients with details, course times, locations etc.

The asking price for management rights is usually a multiple of the business’s annual net profit. A management rights business that returns $120,000 a year could be valued at four to five times that (between $480,000 and $600,000). Generally, you can’t buy a management rights business without also buying a manager’s residential lot. Other costs you need to allow for include: Purchase of the managers residential lot accounting and legal fees bank charges valuation fee stamp duty licence application fee The team at  Australian Resort Management Sales  have all been actively involved within the industry for many years and have specialist knowledge based on hands on experience. We specialise in matching sellers and buyers in an open honest environment to achieve the best possible result for all parties.