Management Rights originated in the mid-1970s on the Gold Coast. This widely used management system has proven to be highly successful throughout Queensland in the years since. Management Rights were born out of necessity when property developers in the 60s and 70s realised that they could more effectively manage their businesses by buying a unit within the development and using the unit as their residence and a base in which to operate their onsite caretaking and letting agency business, thus creating Management Rights that could be bought and sold.
To own Management Rights is to provide management services for a variety of properties such as townhouses, apartments, and other community buildings. There are four different major types of communities i.e. permanent residential letting, holiday letting, business letting, and student accommodation. Some communities are hybrids of one or more of these models.
With Management Rights there is no inventory to manage, no shops to rent, streamlined staff, flexible working hours, and many other benefits. Being a business that is relatively easy to get into, and with the unique financial stability that it offers, Management Rights has become an industry that has attracted the attention of many people from varied walks of life.
1. Caretaker agreement
Your task is taking care and maintain the common area of the complex or building. This may include the gardens in common area, facilities such as swimming pool or BBQ. Or supervision of work carried out in common areas. You provide the management service, and your salary is usually paid by monthly. The salary also will be reviewed every year, usually will increase according to the agreement.
2. Letting agreement
You will manage the rental property on behalf of the individual owner. Individual property owners will pay commissions and management fees to you to ensure that rental property in good condition, and give a good rental return.
3. Manager Unit
Purchase of Management Right, you will also have a manager unit. Manager unit usually will have an office or reception area and more storage space.
Body Corporate Salary
As an onsite manager, you will earn a salary from caretaking and maintenance of common areas of the complex. The size of your salary depends on the size of the property. Of course, the larger the property, the higher the salary.
Leasing commissions and management fees
Individual property owners will pay you a commission and management fees to manage their rental properties. This is done by collecting rent and ensuring their properties are in good condition. The typical commission rate for holiday letting is 12% and the commission rate for permanent residential letting is 7.5%. Additionally, you receive the equivalent of a week's rent as a letting fee when signing up a tenant to a new lease.
Other service income
As you are familiar with the complex and individual properties within, you can earn extra income through performing cleaning duties, maintenance and repairs, gardening, and providing travel bookings and equipment rentals to tenants.
Almost anyone, from any background, can invest in Management Rights successfully. Here are examples of people, in common life circumstances, that could benefit from Management Rights. Perhaps you will relate to one or more of them.
Feeling stagnant.
Some have been working in the same job for years, helping their boss move forward, while they remain stagnant, making no progress at all. They are tired of being underpaid and tired of trying to climb the corporate ladder with no results. Eventually, they decide to try something new, become self-employed, experience less stress, earn a high stable income, and work flexible hours.
Ex-Tradies.
Tradespeople make great managers. Every property will eventually need maintenance and/or repairs. If you’re an ex-Tradie turned Management Rights owner, you can either call in a contractor or do it yourself. These basic repairs are effortless for someone with a trade background. Additionally, you get to maintain the skills you’ve developed over the years, and because every job is different, you're never bored. Best of all, you’re the boss with a steady, and very healthy, income. There's no need to worry about non-payment, loss of income from jobs falling through, or lack of work.
Semi-retired.
Those who are semi-retired have worked hard for years but may not be ready to give up work altogether. The perfect solution for them is a job that’s more relaxed and allows them to work when and how they want, in short, a job that makes them the boss of their own time. Management Rights allow for the pursuit of hobbies and time to spend with friends and family.
New to Queensland.
If you’ve ever moved to a new house, you know how much effort is involved. After relocating, if you don’t already have a job lined up, finding one is the next step. With Management Rights, that is all taken care of. Whatever your reason for moving, or your choice of area, Management Rights will give you a healthy, stable income from the start, and because you live where you work, there are no commuting issues. Finally, you have the flexibility of work hours which gives you more time to do the things you want to do.
It may sound too good to be true, but this is the life that Management Rights offers. You choose your hours, you enjoy a high stable income, and you make lots of new connections without any of the stress.
If you want to get involved in this attractive industry, there are some basic things you must consider:
What is your budget?
Do you want a property in a particular area?
Would you prefer permanent letting or holiday letting?
Have you talked to a financier specialising in Management Rights?
Once you have, you will have a clearer understanding of how much you can afford along with the pros and cons of various types of loans.
You should also consider what kind of manager’s unit you want to buy. What are your income expectations? Do you have a special expertise such as maintenance, gardening, or cleaning? You want to buy a business where you can use your expertise to your advantage and earn extra income.
Many people are attracted to the Management Rights industry because first-time buyers are able to purchase established businesses. As long as they pick up where the last owner left off, and maintain the same level of professionalism or better, they will easily stay on track. From here they can build on and improve the business to their satisfaction.
If you want to find a situation best suited to you and your needs, a specialist Management Rights agent can discuss your needs and goals with you, narrow your search, and efficiently find the right property for you. A professional agent should match your needs at least on the following points:
- Net income level
- Complex location
- Manager Unit
- Management Module
- Body corporate salary and review
- Contract period
- Duty content
- Manager unit price
- Business price
Because of Government regulations, most agents use similar contracts, similar standards, and special conditions, but a good agent will place great importance on your interests from the beginning. Once you reach an agreement with the seller, your agent will prepare a formal contract which will include the four general conditions that apply in purchasing a Management Rights business.
- 7 days for building an pest inspection of the manager unit.
- 14 days for financial verification by an auditor appointed by you.
- 21 days for legal investigation by a solicitor appointed by you.
- 28 days for financial approval.
- The last step is getting approval from the Body Corporate after which you will be the new manager.
Management Rights originated in the mid-1970s on the Gold Coast. This widely used management system has proven to be highly successful throughout Queensland in the years since. Management Rights were born out of necessity when property developers in the 60s and 70s realised that they could more effectively manage their businesses by buying a unit within the development and using the unit as their residence and a base in which to operate their onsite caretaking and letting agency business, thus creating Management Rights that could be bought and sold.
To own Management Rights is to provide management services for a variety of properties such as townhouses, apartments, and other community buildings. There are four different major types of communities i.e. permanent residential letting, holiday letting, business letting, and student accommodation. Some communities are hybrids of one or more of these models.
With Management Rights there is no inventory to manage, no shops to rent, streamlined staff, flexible working hours, and many other benefits. Being a business that is relatively easy to get into, and with the unique financial stability that it offers, Management Rights has become an industry that has attracted the attention of many people from varied walks of life.
1. Caretaker agreement
Your task is taking care and maintain the common area of the complex or building. This may include the gardens in common area, facilities such as swimming pool or BBQ. Or supervision of work carried out in common areas. You provide the management service, and your salary is usually paid by monthly. The salary also will be reviewed every year, usually will increase according to the agreement.
2. Letting agreement
You will manage the rental property on behalf of the individual owner. Individual property owners will pay commissions and management fees to you to ensure that rental property in good condition, and give a good rental return.
3. Manager Unit
Purchase of Management Right, you will also have a manager unit. Manager unit usually will have an office or reception area and more storage space.
Body Corporate Salary
As an onsite manager, you will earn a salary from caretaking and maintenance of common areas of the complex. The size of your salary depends on the size of the property. Of course, the larger the property, the higher the salary.
Leasing commissions and management fees
Individual property owners will pay you a commission and management fees to manage their rental properties. This is done by collecting rent and ensuring their properties are in good condition. The typical commission rate for holiday letting is 12% and the commission rate for permanent residential letting is 7.5%. Additionally, you receive the equivalent of a week's rent as a letting fee when signing up a tenant to a new lease.
Other service income
As you are familiar with the complex and individual properties within, you can earn extra income through performing cleaning duties, maintenance and repairs, gardening, and providing travel bookings and equipment rentals to tenants.
Almost anyone, from any background, can invest in Management Rights successfully. Here are examples of people, in common life circumstances, that could benefit from Management Rights. Perhaps you will relate to one or more of them.
Feeling stagnant.
Some have been working in the same job for years, helping their boss move forward, while they remain stagnant, making no progress at all. They are tired of being underpaid and tired of trying to climb the corporate ladder with no results. Eventually, they decide to try something new, become self-employed, experience less stress, earn a high stable income, and work flexible hours.
Ex-Tradies.
Tradespeople make great managers. Every property will eventually need maintenance and/or repairs. If you’re an ex-Tradie turned Management Rights owner, you can either call in a contractor or do it yourself. These basic repairs are effortless for someone with a trade background. Additionally, you get to maintain the skills you’ve developed over the years, and because every job is different, you're never bored. Best of all, you’re the boss with a steady, and very healthy, income. There's no need to worry about non-payment, loss of income from jobs falling through, or lack of work.
Semi-retired.
Those who are semi-retired have worked hard for years but may not be ready to give up work altogether. The perfect solution for them is a job that’s more relaxed and allows them to work when and how they want, in short, a job that makes them the boss of their own time. Management Rights allow for the pursuit of hobbies and time to spend with friends and family.
New to Queensland.
If you’ve ever moved to a new house, you know how much effort is involved. After relocating, if you don’t already have a job lined up, finding one is the next step. With Management Rights, that is all taken care of. Whatever your reason for moving, or your choice of area, Management Rights will give you a healthy, stable income from the start, and because you live where you work, there are no commuting issues. Finally, you have the flexibility of work hours which gives you more time to do the things you want to do.
It may sound too good to be true, but this is the life that Management Rights offers. You choose your hours, you enjoy a high stable income, and you make lots of new connections without any of the stress.
If you want to get involved in this attractive industry, there are some basic things you must consider:
What is your budget?
Do you want a property in a particular area?
Would you prefer permanent letting or holiday letting?
Have you talked to a financier specialising in Management Rights?
Once you have, you will have a clearer understanding of how much you can afford along with the pros and cons of various types of loans.
You should also consider what kind of manager’s unit you want to buy. What are your income expectations? Do you have a special expertise such as maintenance, gardening, or cleaning? You want to buy a business where you can use your expertise to your advantage and earn extra income.
Many people are attracted to the Management Rights industry because first-time buyers are able to purchase established businesses. As long as they pick up where the last owner left off, and maintain the same level of professionalism or better, they will easily stay on track. From here they can build on and improve the business to their satisfaction.
If you want to find a situation best suited to you and your needs, a specialist Management Rights agent can discuss your needs and goals with you, narrow your search, and efficiently find the right property for you. A professional agent should match your needs at least on the following points:
- Net income level
- Complex location
- Manager Unit
- Management Module
- Body corporate salary and review
- Contract period
- Duty content
- Manager unit price
- Business price
Because of Government regulations, most agents use similar contracts, similar standards, and special conditions, but a good agent will place great importance on your interests from the beginning. Once you reach an agreement with the seller, your agent will prepare a formal contract which will include the four general conditions that apply in purchasing a Management Rights business.
- 7 days for building an pest inspection of the manager unit.
- 14 days for financial verification by an auditor appointed by you.
- 21 days for legal investigation by a solicitor appointed by you.
- 28 days for financial approval.
- The last step is getting approval from the Body Corporate after which you will be the new manager.