What are Management Rights?
the business of managing a strata (Hi-Rise, Townhouses, 3-storey walk-up) complex with the purchase of a “managers” unit/residence and 2 business contracts
- caretaking/managing of the common property
- letting rights
The Unit Contract and the Business Contract must be completes must be completed Contemporaneously
As the buyer (Resident Managers) you are agreeing to do the caretaking of the common property (sweeping, weeding gardens, mowing, managing the swimming pool, etc.) and you are paid are paid a Contractual Remuneration by the Body Corporate (usually monthly in arrears).
The Letting Agreement allows the buyer to let the units/townhouses within the complex and you must obtain a “Resident Letting Agent” License to allow you to manage rentals within the scheme. Some buyers also obtain their Full Real Estate License or a Real Estate Sales License to enable them to sell units within their complex.
Using Accountant, Lawyer, Financier, Banker with Management Rights Experience (Management Rights Professional)
is essential as the Management Rights industry is very specialised. We stress that it is of the utmost importance you use Management Rights experienced professionals to ensure you get the best advice prior to and during the contractual stages. Choosing to use professionals who are not recognised in the industry can lead to increased costs, more complications or even a loss of the contract. You must check that your bank or finance lender recognises them, otherwise, you may be up for extra costs to repeat the legal, and the accounting due diligence by professionals the bank recognises.
Different Management Rights?
Short-Term or Holiday Letting, Short Term or Corporate Letting, Long Term Permanent Letting, Student letting and mixes of these.
If you are considering getting into Management Rights then I can highly recommend David Manson. I have known David for many years now and have had to call on his expertise in the industry many times. He has assisted me in both the purchasing and selling side of the business. I’ve dealt with many agents in the industry and there are none more ethical and helpful than David. When I first was shopping to get into the industry David was a breath of fresh air and went out of his way to assist me with shopping for the right business for me. Keep up the excellent work David!Gary
David worked hard with both my wife and I. When things looked like it might fall apart he arranged a meeting with the vendor to ensure that we were able to buy the management rights business of our dreams. Even today David use his wealth of experience to assist us run our businessMark G
We have always found David worked really hard to find us the ideal complex. He was very patient and explained the pros and cons of the 6 buildings we inspected. This resulted in the purchase of large management rights in Surfers Paradise which fitted our needsGraham