Three key elements for owning and operating Management Rights
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.
Three Business income streams
1. Body corporate Salary
As an onsite manager, you will get a salary to take care and maintain the common area of the complex. Salary depends on the size of the property. Of course, the larger the property, the salary will be higher.
2. Leasing commissions and management fees
Individual property owners will pay commissions and management fees to you to help them manage their rental properties, collecting rent, and ensure that their rental properties are in good condition. Usually, in holiday letting, the average commission rate is 12%. In permanent residential letting, the commission rate is 7.5%, and will get a week rent as letting fee when signing a new lease.
3. Other service income
Since you are familiar with the complex and individual property, you have the opportunity to earn extra income. For example, by cleaning, repair and maintenance, gardening, and travel booking and equipment rental.
Is a Management Rights business, right for me?
Nearly anyone from any background can invest in Management Rights, be successful and be happy. Below we’ve listed a few situations that you, a family member, or friend may come from or be familiar with, and how you and they can benefit from Management Rights.
Been working for ‘the boss’ for so long. In the same situation seems like an eternity. Tired of working more than what you’re paid for, trying hard to climb the ‘corporate ladder’. After something new, but something that will still give you less stress, a high stable income, and flexible hours where you’re the boss.
This may sound too good to be true, but this is what Management Rights is. You get to choose the hours you work, there’s always a high stable income coming in and you have the opportunity to meet a lot of new people. Just without all the stress.
What about all the tradies out there?
Every house will eventually need some maintenance and/or repairs. With Management Rights, you can rather call in a contractor to make repairs or you can do them yourself. These basic repairs are ‘child’s play’ for someone with a trade background. You get to use the skills you’ve developed over the years, and because every job is different, you never get bored doing the same thing every day.
Best of all, you’re the boss, and you have a continuous and steady income. So no need to worry about not enough income from jobs falling through, or quiet times.
You’ve had a good working life. You’d like a much more relaxing job, that lets you work when you want to work, the hours that you want to put in, and you’re the boss of your time.
Management Rights allows you to choose how much work you put in and gives you the spare time you want to spend on hobbies, with family and friends or anything you want.
Moving To/ New To Queensland
If you’ve ever moved house before, you know how much effort is involved. Also after a big move, if you don’t already have one lined up and ready, then finding a good job is the next step. With Management Rights, that is all taken care of. Whatever your reason for moving is, or where you’d like to move to, Management Rights supplies you with a high, stable income from the get go. And because you live where you work there’s no stress in trying to learn the streets and traffic conditions, or the quickest route. You also choose the hours you work, which gives you more time to do what you want to do.
How to choose a Management Rights suit for you and the purchasing process?
Want to get into this attractive industry? There are some basic conditions you must consider, such as what’s your budget? Have you talked to any financier specialised in Management Rights? If you do, you will be able to clearly understand how much you can afford and the pros and cons of various loans. Do You want to find a property in a particular area? Do you prefer to do permanent letting or holiday letting?
There are also, what manager unit do you want to buy? What income levels will meet your expectation? Do you have special expertise, such as maintenance, gardening, cleaning, so you want to buy a business which you can use your expertise and earn extra income?
Many people like Management Rights industry because even a first buyer can also buy an established business. Basically as long as he/she “continue to do which has been done before”, he will be easily on the right track, then the manager can use the talents and creativity to build the business until satisfied.
If you are thinking to find a good choice for you, a specialist Management Rights agent will discuss with you, narrow your search, efficiently meet your needs to find the right property for you. The Professional agent will certainly 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 the regulation from the Government, although most of the agents use similar contract, or use similar standard and special conditions, but a professional agent has great importance to your interests from the beginning. Once you reach the agreement with the seller, your agent will prepare a formal contract, which includes the general four purchases must go to purchase 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 is getting approval from the Body Corporate, then you will be the new manager.