While the management rights business has been around for more than three decades, there are still some people who may have little clue as to what it really is. For those in the real estate property market and construction industry, the enterprise that was pioneered by Queensland in the 1970s is something that already deserves a makeover. Some industry experts have also called for the introduction of a new business model.
Management Rights Simplified
Brisbane’s ResortBrokers.com.au explains that management rights are given to a particular resident owner to provide oversight for the day-to-day operations and upkeep of the common areas of a living complex, such as an apartment complex or even an exclusive townhomes. The idea is for this resident owner to be the caretaker or resident manager of the property complex. Another inherent right of the resident owner or manager is in the letting business or rental of units owned by non-resident investors or owners.
Simply put, a management right is a kind of business where you act as a manager of the property complex, as well as the broker for those who would like to lease their units.
How Can You Earn Money from It?
Management rights is a business because there are two possible sources of income. One is you get a salary for the performance of the caretaking or resident manager role. The salary will come from the Body Corporate.
Additionally, there may be some units that are empty or are not being used by their respective owners. As such, they will allow you to rent or lease their property to others. You will get a commission from the lease of the property, as well as from the other fees that you and the non-resident owner had previously agreed upon.
Should You Invest in Management Rights?
Many industry experts believe that, while the business model already requires a makeover, it is still a very lucrative business to invest in. There are plenty of management rights brokers and agents who can custom-fit properties for your needs. As management rights will involve a significant amount of investment, it is imperative that you have your finances well organised.
What clearly entices modern-day entrepreneurs in entering the management rights business is the duality of the benefits. You get to own a property and, at the same time, get paid for maintaining the overall value of the entire property complex.