Prospective permanent rental in holiday resort

[Annie63]

Hi there

My husband and I own a unit in a holiday resort in Mallacoota. We have just been advised by the manager that there are 4 units for sale which could be potentially rented out on a permanent basis. The majority of unit owners in this complex are not in favour of this. Should this concern be referred to the Body Corporate and where do we stand legally? Body Corporate meetings are held annually in June.
I would appreciate any feed back or advise.

 

[marg4000]

I really can't see that you can stop someone using their property in any way they see fit. If I buy a unit, I can either live in it, rent it out permanently or rent it out to holiday makers, or even leave it vacant if i want to. My choice, and I really can't see that other unit owners can force me to do something I don't want to do.

But why would you object? This action would take 4 units out of the rental pool which will mean more bookings for the remaining units.

Usually objections are the other way around. I have friends who own a permanently let unit in a complex that also has holiday renting. It is the holiday-makers who cause most of the friction - they don't live there, they will be gone in a week or two so feel free to flout the by-laws, play loud music, kids run riot, park anywhere etc. despite the best efforts of the complex manager.
Marg

 

[alexlee]

Why would you want to object to it? A few units rented out permanently means those units won't be competing with yours. Not to mention permanent tenants generally mean less wear and tear than people who just rent the places temporarily.
Alex

 

[Pushka]

I dont see why Body Corporate would want to have anything to do with it. Unless the people are creating a public nuisance, it is none of their business, and why shouldnt they use the apartment as they wish? Maybe they might object to all the holiday renters in the place?

 

[Annie63]

Potential Permanent Rental in Holiday Resort

Hi all
Thankyou for your replies. I have taken your comments on board. I have attached a memo which was sent by the manager to all unit owners. This expresses our sentiments on the situation.

 

[Lizard King]

I really can't see that you can stop someone using their property in any way they see fit. If I buy a unit, I can either live in it, rent it out permanently or rent it out to holiday makers, or even leave it vacant if i want to. My choice, and I really can't see that other unit owners can force me to do something I don't want to do. Marg

This is not entirely true.

It depends on (1) the by-laws of the Strata Company, and (2) what the premises has been licenced for. The latter is issued by your local Shire.

On reading the Strata Mnager's Memo, I think they are valid points.

Lliving in a holiday resort could be cheaper than buying elsewhere. Under these circumstances, i.e.

Lizard King

 

[Pushka]

Ok, thanks for the further information. To me though, it seems like Gowings is more concerned about losing its business than anything else. I think what might happen is inevitable, so perhaps your best bet is to have contingency plans in advance - so you at least have thought everything through - like cost of additional use, etc. Not sure why the Units would have to cease renting as holiday units though - many Queensland Resorts have both permanent and Holiday residents so there is a lot of precedent for it. We have seen many of these at Noosa for instance. Although the residents usually winge about holiday makers throwing their towels over the balconies (forbidden anyway) which means sand and water continually drip into their homes. And the noise, the drinking and the parties - actually I could think of nothing worse as a resident to have all the neighbours being in continuing holiday mode!

 

[LynnH]

And the noise, the drinking and the parties - actually I could think of nothing worse as a resident to have all the neighbours being in continuing holiday mode!

Pushka

I'm in agreement with you there! I couldn't imagine that there would be a big demand for permanent rentals in what is essentially a holiday accommodation complex - can't imagine there would be much "quiet enjoyment" for tenants in that sort of situation.

Cheers
LynnH

 

[GoAnna!]

Surely the prices achieved for the units woudl be higher if offered for sale owner occupied? (I imahine this is why it is happening) It would effect finance and increase the pool of possible buyers. Surely this would have a positive impact on the value of your own dweling.

Yes the atmosphere woudl change but I suspect that the main issue is that the permanent residents would over time complain about the party atmospehere they have moved into. That could cause real friction.

I find it hard to belive that there would be greater wear and tear with pernament residents as they would tend to be home less I imagine as they would be working etc rather than having heaps of time on their hands.

I imagine that body corporate could make rules such as the facilities are available to residents only and not to visitors.

What was the legal setup whe you bought in?

 

[Annie63]

Hi all

Thankyou for your replies.
It is interesting to see different views on this topic.
We bought the one bedroom unit privately in 2006 with a view to use it as a holiday getaway. Family and friends have also used it. At first we decided not to rent it out as we wanted to get as much use out of the unit as possible. We could either holiday rent, keep it empty or use it when we wanted. We had never considered renting it out permanently. Why would we? Considering it was part of a holiday complex. We didn't even think it was an option. That prospect never crossed our minds.

The complex manager approached us last September and asked us would we be interesting in renting it out during peak periods as there was a shortage of rental units in the complex. We agreed. Rental income covers our body corporate fees, management and advertising. Rental is seasonal in Mallacoota.
In comparison to other interstate or larger resorts, this resort is only busy in peak periods. Atmopshere in the complex over peak period is surprisingly quite serene as it attracts an older age group. We have alot of nature lovers, birdwatchers and environmentalists come through. Younger families tend to camp at the various caravan parks in town. Its an ideal place to go for peace and quiet.
However, there is one permanental rental in the complex. The tenant has in the past held parties that have continued until the early hours of the morning. The complex manager arrived home to a swarm of drunken adults, kids and dogs. Not exactly great advertising for the complex! I have visions of another "Melrose Place" in the making. I feel the complex would attract people in the 18-30 age bracket due to its position (directly behind the pub and main shopping strip), amenities and as a low cost housing alternative.

Mallacoota is only a small town, with a population of 1000. It culture is quite diverse. A majority of its population prefer an alternative lifestyle. Not that I feel this is a bad thing, that's what attracted us to it in the first place. I liken it to Byron Bay, but on a much smaller scale.

After reading your posts I have now come to the understanding that we have no choice but to go with the flow and deal with whatever comes our way. As unit owners we aim to preserve the complex and try to maintain the same surroundings and peaceful atmosphere it has today.

Cheers
Annie

 

[jaycee]

Not sure, would the 18 - 30 party crowds want to live side by side with older more mature holiday makers (live permanen tly, not just on holiday for a week or 2, when people might not care & do what they want) ?..

 

[grossreal]

hi Annie63
I think the question needs a very simple answer.
its what is in the strata when the strata was formed and if the property was for service appartments then no you can't live there.
just the same as if it say that you can keep a pet under 5kg if your dog weighs 15kg you can't live there.
when you set up a strata you decide in advance what and who will move into the unit or complex and it does not matter to me what the real estate advertise at the end of the day it depends what that strata says.
and no its not a good idea for permanent and casuals to fix as people get to like where they stay and then don't like the people comming in and going and in the end the friction does not work.

when setting up a body corporate its very important to decide who and what type of people will be living there.
so I would check the body corp doc and see if permant is allowed I think you will find its not.

 

[Annie63]

Hi all

Thankyou again for your replies/comments. It is much appreciated.
I have attached an email which I recently received from the Body Corporate Manager. Unfortunately it changes the whole perspective on the issue as there were no 'specific' rules set up at the time of the Body Corporate forming.

Cheers
Annie

 

[Pushka]

Not sure, would the 18 - 30 party crowds want to live side by side with older more mature holiday makers (live permanen tly, not just on holiday for a week or 2, when people might not care & do what they want) ?..

The holiday makers are the 18-30 party crowds, and the long term residents are the oldies - at least on the Sunshine Coast.

Specific resorts that do have a mix (well, they did a couple of years ago!) are the Fairshore Apartments (right on the Beach on Hastings Street) and Noosa Harbour Resortat Noosaville (right on the river). I think the Body Corporate managing them might be Richards Body Corporate - maybe you could seek feedback from them and the Resort about how it all mixes. We have stayed in both, and didnt really notice any issues. I suspect the owner/residents would be the ones most affected, so if they choose to live there, then that would be there issue Knowing they are moving into a holiday style environment.

In lieu of the latest Body Corporate info, I would start getting some rules in place now, before any new owners/possibly residents arrive - eg pet size - you dont want dogs and cats, for instance. You dont seem to have a choice now, so at least get those things you see as important, all settled and incorporated into the Body Corporate deed now before problems arise.

Some years ago we purchased a Unit in a Sunshine Coast resort complex, and while we did rent it to Holiday makers while we owned it, for a time we did contemplate living in it and we simply would not have given a thought as to what other Unit owner's would have thought about us living there.

 

[Annie63]

The holiday makers are the 18-30 party crowds, and the long term residents are the oldies - at least on the Sunshine Coast.

Hi Pushka

Thankyou for your advice.
In reply to your quote, I understand fully the majority of holidays makers in the 18-30 age group are party crowds. However, we are in the opposite position in this case. Mallacoota is home to probably more young people than old, the opportunity of living in a resort style complex would be very appealing. Rental in Mallacoota is very limited, there is a constant demand (via the local newsletter) for rental properties.

I guess our next step (like you said) is to implement some changes into the Body Corporate Constitution.

Can anyone advise me whether financial members have the right to call an extraordinary meeting or is this organised and decided upon by the Body Corporate manager? Unfortunately, only one meeting is held annually in June. (AGM)
I apologise for my ignorance, but I still have my 'L' plates on. It's a little different to running the local junior footaball club!

Cheers
Annie