What are ‘Management Rights’?

Management Rights are the rights to act as the onsite manager and letting agent for some or all of the units in a building or development. The purchase of Management Rights almost always includes the purchase of the Resident Manager’s apartment.

When you invest in Management Rights you are buying both a business (the Management Rights) and a home (the Manager’s apartment). The 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.

How does a Management Rights business make money?

As the holder of Management Rights for a development, you normally have two types of income:

1. You are paid an annual salary by the Body Corporate of the building’s owners. This is in return for your managing maintenance and repair of the common areas. The actual cost of maintenance and repair is borne by the Body Corporate. You are paid simply to manage the process. This salary is subject to annual cost-of-living adjustment.

2. You are paid a 12% commission on holiday lettings. In return you manage the bookings, servicing and maintenance of all individual apartments for which you are the Letting Agent. This income will rise or fall with changes in tourism, which is why you should only invest in an absolutely prime location.

Of these two, income from lettings is by far the greater proportion of your total income.


Say the building you manage has 50 apartments to let, at an average of $175 per night, occupied 85% of the time:

Units to let (the ‘letting pool’) 50
times average nightly rate $175
times nights per year 365
times occupancy rate 85%
Total Annual Commission Income $287,437

You may also make additional income managing maintenance and repairs to individual apartments on behalf of their owners and providing extra-cost services to guests.

Finally, you usually make a capital gain if and when you decide to sell your Management Rights.

How much should you expect to pay?

Most of our current sites are valued 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.

Your bank will usually loan 70% of the total. Stamp Duty and professionals’ fees usually add up to around 6% of the total.

So, roughly –

Business Component $2,000,000.00 $5,000,000.00
Managers Unit $500,000.00 $750,000.00 (Cash Required)
Managers Unit $100,000.00 $150,000.00
For Business $700,000.00 $345,000.00
For Duties & Fees $150,000.00 $345,000.00
Total Cash $950,000.00 $1,995,000.00

How does Dreamtime Resorts help me?

After decades in the Management Rights and real estate industries, we have contacts with developers and Resident Managers all along Australia’s eastern coastline. We can find the property that suits your requirements for lifestyle and investment performance.

If you do decide to invest in a property with Dreamtime Resorts, we’ll help you by promoting it worldwide, as we do our existing properties. Your property will be included in our ongoing deals with major travel wholesalers and agents.

In addition, you’ll be on over 4,240 websites, including high-traffic travel sites like Booking.com, Expedia, Wotif, Agoda, Orbitz Worldwide and Quickbeds.

Dreamtime Resorts gives you widespread promotion coupled with an eye for quality properties in prime locations. This means high occupancy rates and minimal discounting. The end result is a better business for you.


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