Licensing and Training
Wednesday, September 7, 2011 - 11:37
As you will be collecting rent for your investor owners you will need a Resident Letting Agent’s Licence (Queensland) or an On-Site Resident Property Manager’s Licence (NSW) to own and operate Management Rights. This is a special type of Real Estate licence enabling you to collect rent for properties within a nominated complex. It was formerly known as a “restricted” Letting Agent’s Licence.
How Do We Choose the "Right" Management Rights?
Wednesday, September 7, 2011 - 11:46
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”.
Letting Types
Wednesday, September 7, 2011 - 13:22
While there are predominately two main types of Management Rights, which are Holiday (Short Term) or Permanent (Long Term) letting, it is possible to combine the two into a "Mixed Letting" business. In some cases, Management Rights may also involve "Caretaking only" or could relate to the management of purpose built accommodation for student accommodation. Many factors may influence the business operation and lifestyle relating to these businesses.
The Agreements
Wednesday, September 7, 2011 - 15:03
Usually, there are two Agreements between the Resident Manager and the Body Corporate. They are:
The Caretaking Agreement
The Letting Agreement
The Caretaking Agreement is entered into between the Resident Manager and the Body Corporate.
Valuation Method
Wednesday, September 7, 2011 - 16:09
There are two components to your Management Rights purchase:
This will comprise the current market value of the Manager’s Unit plus an extra “premium” (currently 5-10%) to account for the fact that the Manager has either exclusive use of an office/reception area under the By-Laws of the scheme or has that area "on the Title" to the Manager's Unit.
Established or Off the Plan
Wednesday, September 7, 2011 - 16:14
When you buy an established business what you see is what you get and many people like the relative certainty that comes from buying an established complex. This goes for both the business and the building.
Smart Questions
Wednesday, September 7, 2011 - 16:24
Management Rights sell as a multiple of the net profit. For example if the net profit is $100,000 the management rights might be valued at (say) 4.5 times that - $450,000 plus the value of the manager's unit and equipment.
What do we do First
Wednesday, September 7, 2011 - 16:31
Selecting a Management Rights business should not be a quick decision. It is important to research and discuss your circumstances with people who know and understand the industry.
In addition to the information provided here in the Australian Management Rights web site, you can visit other sites, attend seminars and speak with Managers who are currently operating or have previously owned Management Rights.
What happens after we sign a Contract?
Wednesday, September 7, 2011 - 16:37
The contract you sign will contain two clauses which set out Body Corporate remuneration and the stated net profit of the business. When you are borrowing to finance the business it will be a requirement of your lending institution that the profit verification for the designated twelve month period be conducted by an industry recognised accountant.
Terminology
Wednesday, September 7, 2011 - 16:52
The Act
The Body Corporate and Community Management Amendment Act 2003 which is the legislation in Queensland which covers units and town houses. Commonly called the BCCMA.
Industry Service Providers
Saturday, September 10, 2011 - 08:10
BRISBANE
National Australia Bank 07 3340 3109
Fiona Carlson
www.nab.com.au
PCS Finance 07 3252 2219
Damien Windle
www.pcsfinance.com.au
CAIRNS
ANZ Bank - Cairns 07 4050 4735
Colin Dockery
www.anz.com
