Management rights are a type of a business that concern the on-site management of a property. It is a business that is very lucrative for those who wish to take the plunge. Here’s an overview of the business of management rights.
As the owner of management rights, explains Resort Brokers, you have the choice to manage different types of properties such as-
- A holiday apartment that will be let out for short periods.
- Permanent housing units that will be rented out for longer time periods.
- Corporate complexes that will be let out for business purposes.
- Student complexes that will be let out for long term stays.
Your responsibilities in the business
As a management rights business person, you will be required to function as an-
- Active owner and operator
- A partner
In either case, you roles will be-
- As a caretaker who maintains the property on behalf of the Body Corporate or Owners Corporation. This would include maintaining the pools, gardens, bins and security of the property.
- As a person who draws the letting agreement. Each time you find a tenant, you will be responsible for drawing the letting agreement.
- As a caretaker for the management office and reception area, usually an apartment in the building that is called as the manager’s unit.
For performing these varied roles, you will be given an income which can come from 3 different sources-
- Body Corporate salary. This is the remuneration you will receive from an apartment complex for maintaining the common areas of the property.
- Letting commission. This is the payment you will receive as a commission for having found a good tenant for the owner and for managing the tenants during their stay.
- Additional income that may come for some extra work you do such as cleaning, tour booking, equipment hiring and others.
This kind of a business is not very tasking, fetches you good money, and can be done while sitting at home for the most part.