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.

In addition to the price of the Manager’s Unit, the Management Rights business component, the Letting Business and the Caretaking Business, is valued by a multiple of net operating profit for a designated period, usually the twelve months prior to Contract Date.  Many factors, such as size of the complex, location or general market conditions influence the business multiplier calculation, but current trends suggest a multiplier between 3.5 to 5 times the net operating profit is a realistic assumption.

Management Rights businesses range in price from as low as $500,000 up to more than $7 million. As many factors influence the Management Rights purchase price we would recommend you research listings at www.propertypacific.com.au to obtain an indication of trends in your selected area.