Management Rights offers excellent opportunities for people of all ages and situations.  There are many types of Management Rights businesses and it is definitely not a case of “one size fits all”.

Many advocates of Management Rights nominate lifestyle as one of the positive aspects of the business. Let's put this into perspective.  If you are in a large holiday building the duties are many and varied and the Manager’s duties can be onerous, but many tasks can be delegated to paid staff. The location of the holiday resort alone probably presents lifestyle opportunities.
More lifestyle benefits come with the purchase of Permanent buildings where units are tenanted to local tenants on a six months’ lease. This type of Management Rights business may have limited office hours and, providing all cleaning and gardening duties are up to standard, there is ample time for the management couple to take time out and play golf, go shopping or embark on whatever social activities they desire. It is fairly obvious that when tenants lease a unit their obligations are to pay the rent on a regular basis and abide by the by-laws of the building. Very often the managers rarely see their tenants if these obligations are fulfilled.
Whilst the following summary of business opportunities is by no means a definitive list, it may help you to understand the various possibilities:

Smaller complexes are more affordable and provide a good grounding to learn about Management Rights.  If the complex is older, it will also offer the Manager a greater scope for additional income from maintenance work.  A small Permanent complex will also allow at least one partner to continue to work externally.

A Management Rights business in a Permanent complex presents and excellent opportunity for a semi-retired person or couple to move from full-time employment into a business with (generally) no specified hours of work.  The workload will vary depending on the type of complex: townhouses and villas may require several hours to maintain gardens, where a unit complex will require significantly less caretaking time.  Some complexes offer luxurious living for the manager and Body Corporate remuneration to match.

Holiday complexes usually require the Manager to work specific hours.  Of course this means that you are available to assist guests with additional income generating services and to take new bookings.  Like Permanent complexes, you are required to fulfil the Body Corporate duties but you will also be operating the holiday letting business that generates significant additional income.  A large Permanent complex will also provide generous income relative to the size of the complex and the management requirements.

When a complex is of a substantial size, it is likely that the Manager pays contractors to perform some or all of the more time-consuming tasks.  This may include cleaning, yard work and even reception/office duties.

More and more people are seeing the advantages of entering into partnerships with others to purchase and operate Management Rights businesses.

• Larger complex with higher net profit.  The ability to buy a larger complex with a higher income, therefore increasing the return for all parties on their capital investment.
• Better lifestyle.  Working in partnership allows for more time off and helps with the workload.
• Economies of Scale.  Multiple talents and expertise allow allocation of tasks to appropriately skilled people and the costs associated with employing additional or skilled help are reduced.  The cost of acquiring and running all plant and equipment needed to operate the business is spread over a greater capital base.
• Partnership Agreement.  A clearly defined, documented agreement between all parties ensures that duties and responsibilities are known and agreed upon.

• Partnerships are like marriages.  Personality conflicts are the potential threat to a partnership.

There are many matters that should be provided for in the Partnership Agreement to minimise the prospect of disputes between the parties and to ensure that everyone receives their just entitlement from the operation of the business.  Items to consider are:

• Partnership capital
• Partnership income
• Time spent by the parties in operating the business
• Termination of the partnership
• How major decisions will be made
• Hiring and firing of staff
• Use of the Manager's unit
• Mortgage of the unit
• Daily operations and the delegation of duties
• Financial management