Q: What are ‘Management Rights’?
A: The rights to act as the onsite manager and letting agent for some or all of the units in a building or development.
Q: How are Management Rights valued?
A: The manager’s apartment is valued according to the local real estate market. The business is valued according to how much net income it generates for the owner of the Management Rights.
Q: How does a Management Rights business make money?
A: The Body Corporate of the building’s owners pays you a salary, and individual owners pay a commission on holiday and or permanent lettings.
Q: What do I have to do?
A: For the Body Corporate salary, you manage the maintenance and repair of common areas. For the lettings commission you manage the bookings, servicing and maintenance of all individual apartments for which you are the Letting Agent.
Q: How else can I make additional money?
A: You may contract with individual owners to manage maintenance and repairs on their apartments. You might provide extra-cost services to guests. And you usually make a profit if and when you decide to sell your Management Rights.
Q: How much should I expect to pay?
A: Most of our current listings are between $2,500,000 and $15,000,000 total, of which 20% to 30% is the manager’s unit and the remaining 70% to 80% is the Management Rights business.
Q: How much can I borrow?
A: 70% of total.
Q: How does Dreamtime Resorts help me?
A: Using our contacts in the industry, we can find the property that suits your requirements for lifestyle and investment performance.