Management Rights, otherwise known as Management and Letting Rights is a legal business model popular in Australia. With the tourism industry booming in Australia, the need for affordable accommodation is on the rise. Especially in Queensland, with a burgeoning property market, there is a big need for Management Rights partners in QLD. Under this model, the owner of a business signs a contract with a Body Corporate and manages one or more complexes for which he/she gets a salary and commissions from unit owners. Under the contract, the owner has to manage gardening, pool care and other items mentioned in the contract.
Part of the deal entails the purchase of the 'manager’s unit' in a complex. The manager lives on the premises and runs his business from the resident. This ensures that the investor has a vested interest in maintaining and ensuring cleanliness and good performance. Property values have to be maintained to get a good ROI.
Qualifications for the job:
There are two distinct parts to a manager’s duties and his income.
Salary from the Body Corporate: Every complex with a lot of units has common areas and facilities. The manager is paid a salary every month to ensure that the property is maintained and laws adhered to. The body corporate pays for all property and maintenance related expenses. The manager has to use equipment and services available to maintain the property. The manager gets a commission for vetting new renters and ensuring that the rental property is maintained well.
Qualifications: To be able to legally own and operate such a business model, investors have to get a Restricted Letting Agent License. This is fairly easy to get – applicants have to study 6 different topics and pass a test.
This model is popular with many people and considered recession-proof. Returns are in the 20-25% which is very attractive to those with a limited income. Many even take bank loans to invest and start the business.