Industry Summary

Last update: 06 October 2006.

What are Management Rights ... and why buy?

Management rights is the business of on site caretaking and letting of units or townhouse complexes. They can be 6 monthly permanent rentals or holiday apartments.
You might want to buy management rights for a range of reasons:

• The lifestyle interests you
• It suits you to buy a business and a home in one
• The return on investment is above average compared to other owner operator businesses.
• You're looking for your next career move and like the idea of a low risk business.

But first, what exactly are "management rights"?

When developers build units or townhouse complexes of a reasonable size, it makes sense for the developer to provide for the long term caretaking of the common property (like the gardens and the pool) and for there to be an on site letting service for owners who might want to let their property.

These arrangements are called Management Rights.

It makes for more harmonious living within the complex if the management rights are well set up. The common property will be maintained and the on site manager can handle tenants and rent collection on behalf of the investors.

Because you will be collecting rent, which goes into a trust account, you will need a special form of real estate agent's licence to own and operate management rights. This is called a Residential Letting Licence.

Because the licence only permits you to collect rent from within your complex, it is much easier to obtain than a full real estate agent's licence. Courses are run by TAFE and the REIQ.

Over the years I have sold hundreds of management rights to people from all walks of life. If you like dealing with public - this may be the business opportunity you have been looking for!