New management agreement

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New management agreement

TheresenGreg308
Hello everyone.

Most people won't be aware of the new management agreement that is coming. We have all heard about the new concept apartments and been invited through the newsletter to visit them. But there has been a distinct lack of information about the new management agreement that goes with the new apartments.

My husband and I discovered them by accident  on a recent trip when we had a meeting with the manager to discuss ongoing issues with our apartment. Essentially you are locked in for 5 years with an Oaks preferred furniture package and there are implications if you want to sell your apartment during that time. The positive aspect is that you get a guaranteed income going forward, the negative is that you are committed to a significant capital improvement and a complete furniture upgrade.

I believe that Oaks should have contacted all owners in the letting pool well in advance of this stage to inform us of their plans for Seaforth and their intentions going forward. During our meetings with Oaks management we were informed that these changes had been in the pipe line for 2 years.

I suggest that all owners in the letting pool contact Oaks management and ask for details. You need to make a judgement as to whether this new agreement is suitable for your needs.
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Re: New management agreement

Steve
Hi,
Yes they should notify every one of their intentions regarding the new rental agreement. I think the onsite fees are already high enough as it is; I purchased Lagoon's Unit 623, 3 years ago. The first year I had it as my own personal use, then the second year I signed a contract with Oaks Seaforth to rent it out as part of the rental pool, within 7 months I cancelled the contract with Oaks and went with an outside agent who to this day has had the unit rented out 100% of the time with long term good reliable tenants. I am clearing more money in the hand with long term rental than what I was getting through the onsite rental pool, and the unit is looked after better due to not having a large amount of people through the unit.
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Re: New management agreement

Nikrawson
Hi,

We were first notified about the refurbishment mid last year. We declined the offer to refurbish as our furniture was only 4 years old. It is very coincidental but we were notified of a maintenance issue by the "refurbishment team " not the oaks manager last October. At that time I authorized a repair. It is now march and I have just discovered that the problem was not able to be repaired, however if we "refurbished" this problem would be fixed in the refurbishment. I was also told that our unit would not be rented until the problem was dealt with. I have since dealt with the problem personally. At no time did the hotel manager contact me , just the refurbishment person. I was also advised that rooms would be allocated to refurbished units preferentially.

Similarly we have received a great deal of voucher bookings over the past 8mths. Some in school holidays and peak times. One school holidays we received $96 night for our 3 bedroom apartment. I have explored private permanent rental but have noticed there are currently 6 units in Seaforth for rent privately. I would be interested to know who you deal with to manage your holiday rental?

Many thanks,

Nikki
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RE: New management agreement

Steve
Hello,
 
Yes the communication from Oaks could be improved for sure. I would be interested to know how much is the new furniture package, I imagine it would not be cheap. The previous owners of the unit I bought just had a new package put in not long before I bought it. I think they paid around $24,000. This would be 4 years ago now.
 
The agent who is managing my unit said she would be more than happy to receive some calls about units available for rent. For her contact email please request via the messenger service on this forum.
 
  
Thanks
 
Steve
 

Date: Wed, 5 Mar 2014 21:00:53 -0800
From: [hidden email]
To: [hidden email]
Subject: Re: New management agreement

Hi,

We were first notified about the refurbishment mid last year. We declined the offer to refurbish as our furniture was only 4 years old. It is very coincidental but we were notified of a maintenance issue by the "refurbishment team " not the oaks manager last October. At that time I authorized a repair. It is now march and I have just discovered that the problem was not able to be repaired, however if we "refurbished" this problem would be fixed in the refurbishment. I was also told that our unit would not be rented until the problem was dealt with. I have since dealt with the problem personally. At no time did the hotel manager contact me , just the refurbishment person. I was also advised that rooms would be allocated to refurbished units preferentially.

Similarly we have received a great deal of voucher bookings over the past 8mths. Some in school holidays and peak times. One school holidays we received $96 night for our 3 bedroom apartment. I have explored private permanent rental but have noticed there are currently 6 units in Seaforth for rent privately. I would be interested to know who you deal with to manage your holiday rental?

Many thanks,

Nikki


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Re: New management agreement

SturgWJ
In reply to this post by TheresenGreg308
Hi,  We have just spent a few days at our unit which is in the rental pool and, after we asked to speak with the House Manager, we were shown the new furniture refurb and have since been sent some details about the new contract.  We had heard it was on the cards,  but I am sure that if we had not made this approach we would not have been given the detailed information.  The guaranteed net income looks reasonable when you consider the high level of outgoings we are currently paying,  but we need to look at it a bit further and everyone will have to make their own decisions.  As mentioned I am concerned that if we don't accept the offer, our unit will not attract good rentals and I am sure others have found that when the unit is rented for a short period at a cheap rate, it almost costs us money.   I also have concerns because we find the general upkeep of the unit leaves a lot to be desired - dirty carpets, dusty surfaces, mouldy aircon etc.  The refurb is not going to fix all that.  There were also some veiled comments that all units in the rental pool would be required to accept the refurb so that all furniture and equipment was of the same type.
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Re: New management agreement

Brown 208
In reply to this post by TheresenGreg308
It seems rather poor that owners in the letting pool were not aware of the new agreement and arrangements.  We now live in our unit but when we had our unit in the letting pool, we chose another letting agency, not Oaks, as we had heard very poor reports of their letting abilities.  We had few problems and our unit was always let.  However, Oaks management were not happy with us doing that but it didn't really worry us, after all we are the owners and as building managers they are supposed to work for us!    I advise everyone as owners to keep them on their toes and heed to Sue's advice regarding being vigilant with accounts etc.
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RE: New management agreement

annette
In reply to this post by Steve
Hi Steve

I own two units in Newport, and will not be refurbishing them, or signing a contract for 5 years.

Could you please give me the contact details for your agent.

Many thanks Annette
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Re: New management agreement

JIMACO176
In reply to this post by TheresenGreg308
This is a copy of what I have sent to Sue Jarvie-
We have been talking to Oaks for 2/3 years about a refurb because our Aleutian unit is looking dated even with updates & upgrades since we bought in 2000. We rent it out most of the time except for the occasional visit by us or our family & certainly agree that it should be kept in tip top 5 star condition to attract the most/best bookings. Like other owners we also feel ambushed by the new deal & now have a real dillemma. If we pay for the upgrade ourselves & DONT sign up to their deal BUT keep it in the rental pool we feel that we will only get minimal/crook bookings (footy teams/bogans/very short stays etc) because Oaks will obviously favour the units in their pool first. If we DO take their deal then sure, we get a guaranteed return but is it fair? I am trying to determine if the fixed rent offered to us is fair or not ($430 pw approx from memory) Plus we will get limited access for ourselves. Generally we have some grumbles about Oaks like their abysmal cleaning regime/costs/effectiveness- (I know that they promote the huge profitability of the cleaning as a selling point to shareholders/investors) & they make almost no effort to recover damage/losses from renters. Sue, is it true that they have the management rights for 99 years?
I am glad that we have this forum to air our thoughts & maybe take a more structured  approach to Oaks in regard to the "deal" We have no idea if this is a "take it or leave it " thing or if they are open to negotiation, for instance, on the fixed return or private use or the $100 repair benchmark etc etc. I think a united approach would secure the best deal for us & find it hard to beleive that the refurb is "well under way" like they say in their owner updates.  

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Re: New management agreement

JIMACO176
In reply to this post by TheresenGreg308
I would like to hear from anyone who has signed up to the new agreement please. Could you please reply through this forum- that way it keeps us all informed. I imagine that I would be typical of all of us in the rental pool in that I want my unit to maximise its return. To do this I am happy to keep it in really good nick & am happy to pay to do this- within reason. Therefore I am happy to pay for a refurb myself or sign up to some sort of refurb deal but on fairer terms. My beef is that I am not happy with the agreement as presented & would want to negotiate on some of the terms (see also my previous post)  I want better access to my unit & more money per month & a fairer deal on repairs etc etc. Hasd anyone tried varying the refurb agreement?
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Re: New management agreement

annette
Are there any owners interested in getting together before the AGM to discuss, the new management agreement and the body corporate fees?
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Re: New management agreement

JIMACO176
Annette, I would love to discuss this with other owners but I live 2000kms away & work full time- so I cant get there. Unfortunately that puts Oaks in a position to "divide & rule" & I cant see how we CAN get together to put a united response to them. We would like more access to our unit by us & our family plus a more realistic return from Oaks. Newsflash- we have just this moment received an amended offer from Oaks which would seem to indicate that they realise that they have to sweeten the deal. We have now been told that Mandy will be in touch soon with details of the new offer.Interestingly Oaks are currently advertising units in Melbourne  on a similar deal but with 3 months free access to the units by owners. At least prospective owners of these Melbourne units will know what they are buying- we are in the position of having the goalposts shifted AFTER we bought. I would be willing to offer moral support & ideas to a strong advocate of the owners in the rental pool but where are they? The resort management c'tee consists of owner occupiers mainly (I think?) & I quite understand that they dont have the information/committment and/or will to get into a fight that does not concern them- and I DONT blame them.  Is anyone on the Ctee affected by this deal & where do they stand in this matter?