Management Rights

Management Rights operate in a residential or a holiday complex in strata and community title property. It provides an effective way for a strata title property to operate when a significant number of units are owned by investors who want to maintain an active role in the operation of their investment.

In a nutshell, Management Rights is the name given to the business of living in and care-taking a unit or townhouse complex with the added bonus of running your own business from home.

When developers build these complexes and market the units or townhouses to individual owners, they appoint a Resident Unit Manager (RUM) to provide the long term caretaking of the common areas ( e.g. pool, gardens etc.). A caretaking salary is provided - commonly around $1000 to $1200 per unit per annum (e.g. 20 unit complex = a salary of $20,000 to $24,000 p.a.). This amount increases in subsequent years, usually at least by the States CPI adjustment.

The base salary and duties involved are documented in the Caretaking Agreement made between you and the Body Corporate ( the developer in the first instance, but then a collective of all unit owners). The Resident Unit Manager also enters into a Letting Agreement in which the Body Corporate grants you the sole rights to operate a Permanent and/or Holiday letting business from within the complex. You can then negotiate with individual owners to let their units for which you will receive a letting commission (typically-12% of gross rentals for holiday letting and 7.5% for permanent letting).

In addition, holiday letting offers simultaneous income streams such as unit cleaning, linen hire, tour booking commissions, car hire commissions, unit maintenance, holiday hire (eg bodyboards, tennis balls, beach umbrellas) and the opportunity to make commisions whne you sell units within your own complex.

J Vernon Real Estate are specialists in Management Rights and welcome the opportunity to discuss this exciting investment opportunity with you in more detail. For more information, please contact the team on (03) 9449 0267 or click here.

 

Listings

(Courtesy of Australian Resort Management Sales Queensland, affiliated with J Vernon Real Estate.)

 

Airlie Beach's Finest


Large office/reception area and Conference Centre all on title.

Nice 2 bed, 1 bath managers unit plus separate night managers unit.

This area of Airlie is only going to get better, this is the highest income producing property available in the town, with the 100 seat Conference Centre in demand.

The numbers work well.

Targeting $320k for 07/08 - definitely a good quality property.

To find out more, click here.

Ideal Partnership


4 resorts with common boundary on highest part of Alex Headlands border with Mooloolaba.

Two manager’s apartments included.

Business is run from reception & 3 bed unit in the main complex, the 2 bed unit in the adjacent as new complex could be used for night manager, manager’s guests etc.

Exceptional opportunity to purchase a business with nett well in excess of $400k with potential to grow, along with the flexibility of two manager’s apartments, one of which can generate extra income.

The majority of units have magnificent ocean views.

To find out more, click here.