What Does Management Rights Entail?

What Does Management Rights Entail?
We often receive enquiries asking us What are Management Rights?  Essentially, management rights refer to the legal authorisation given to an individual or entity to offer specific services within a community title scheme.

Let's simplify this for you: when you buy management rights, you're essentially purchasing a business, often with a manager's residence included. There are two main aspects to this business: Caretaking and Letting.

Caretaking

Caretaking involves a legally binding agreement with the body corporate that outlines your responsibilities, for which you receive a salary. These responsibilities typically include tasks like gardening, pool upkeep, cleaning common areas, including vacuuming stairwells, and maintaining the overall appearance of the complex. Your salary is usually reviewed annually and adjusted in line with CPI.

Letting

Your business purchase includes the rights to let individually owned residences on behalf of an owner within the complex. For this you will receive a commission-based income from each individual owner. Commissions for this service that you are providing may vary depending upon whether the residences are in your permanent or holiday letting pool.

It's worth noting that some management rights purchasers focus solely on  caretaking without the letting component.

Residence

Your management rights purchase generally entails purchasing the business and managers residence together, as many caretaking agreements generally require the purchaser or their nominee to reside onsite. However, there are exceptions to this as some agreements do not require an owner to reside onsite.

Since management rights agreements differ between complexes, we are more than happy to spend the time in educating you to have a better understanding of the industry and whether this may be suitable to you.  Please feel free to call us anytime for a friendly chat on 1300 946 921.