Overview

“Management Rights” is the on-site management business of an apartment building or unit complex.

PCS Finance provides innovative finance solutions for the Management Rights industry to benefit purchasers and investors, including:-

• understand your financial capacity when purchasing a Management Rights business
• negotiate the most appropriate finance solution for your Management Rights purchase and look after all of your lending needs (at no cost to you)
• partner with specialists to set up your Management Rights business loan and structure
• form a Management Rights partnership and find a suitable active or silent partner
• respond to purchasing opportunities with responsive and personal service

Property Types

Holiday, permanent, corporate or student accommodation

Secondly, you need to decide whether you are interested in managing a:-
1/ holiday apartment letting out short to medium stays
2/ permanent complex with units or townhouses with longer term stays
3/ corporate complex with short to medium type serviced apartments for business visitors
4/ student complex where typically rooms or complete apartments may be leased out for longer term stays

Location

Firstly it is important for you to understand where you would like to live and whether CBD, Coastal or living in the suburbs are important to you.   This decision can be made based on the amount you want to invest and also the type of lifestyle you want to lead.

Balance between lifestyle and income

To find the right property for you to invest in, it is important to understand the balance between where you want to live and what income you expect from the business.

Some people will have the goal to maximise income while some people will place priority on the standard of living in the managers’ apartment.

Of course you can achieve a high standard of both lifestyle and income but the premium properties that do offer this sell quickly. Therefore, it’s important to place yourself in a strong buying position with finance organised prior to finding the perfect property.

Place high importance on your own research by looking at many properties to understand the type of property that you are interested in.

Ownership

1. Owner Operator
2. Working Partner / silent partner
3. Public Company

Running the business

There are three key components in owning and running a Management Rights business as the active/working owner or partner.

1/ Caretaking agreement

Your role is to maintain the common areas of the property on behalf of the Body Corporate. This may include maintaining swimming pools, the gardens and daily looking after the bins, security, management of the office and supervising work requested by the Body Corporate or owners. The duties will be outlined in an agreement with the Body Corporate and an agreed salary will be provided.

2/ Letting agreement

You will manage the letting pool of apartments in the complex on behalf of the owners of the apartments or building. The individual apartment owners will pay commission and management fees for securing good tenants, collecting rent and ensuring the property is kept in good condition. The letting pool of apartments will exclude live-in owners or owners who want to leave the apartment untenanted.

3/ Managers’ Unit

You will own an apartment in the building known as the “Managers’ Unit”, usually also incorporating the office and reception area.

Business Income

Body Corporate Salary

As Manager of the apartment complex, you will receive a monthly salary to be the caretaker and maintain the common areas. The salary is dependent on the type and size of the complex but a guide range is $800-$1200 per apartment per annum.

Letting Commission

The individual apartment owners will pay a commission and management fee for managing the letting of their properties, collecting and accounting for the rent and ensuring their property is kept in good condition. The average commission rates are 12% for holiday apartments and 8.5% for permanent letting.

Additional Income

As the onsite manager, you may have the opportunity to earn additional income through cleaning charges, linen hire, tour bookings and equipment hire (such as cots, DVDs, surfboards, cars, etc), repairs and maintenance, lawn mowing, general duties.

Testimonial 

“You use plain English and explain things so it makes sense. You also work with our way of thinking and do research along the way. It is both comfortable and comforting working with you”.

P & M Attenborough (Management and Letting Rights Owners)
28-July-07