Management Rights offers excellent opportunities for people of all ages and situations. There are many types of Management Rights businesses and it is definitely not a case of “one size fits all”.


Many advocates of Management Rights nominate lifestyle as one positive aspect of this type of business. Whilst the following summary of business opportunities is by no means a definitive list, it may help you to understand the various possibilities:

Let’s put this into perspective.  If you are in a large holiday building the duties are many and varied and the Manager’s duties can be onerous, but many tasks can be delegated to paid staff. The location of the holiday resort alone probably presents lifestyle opportunities.

More lifestyle benefits come with the purchase of Permanent buildings where units are tenanted to local tenants on a six months’ lease. This type of Management Rights business may have limited office hours and, providing all cleaning and gardening duties are up to standard, there is ample time for the management couple to take time out and play golf, go shopping or embark on whatever social activities they desire. It is fairly obvious that when tenants lease a unit their obligations are to pay the rent on a regular basis and abide by the by-laws of the building. Very often the managers rarely see their tenants if these obligations are fulfilled.

Whilst the following summary of business opportunities is by no means a definitive list, it may help you to understand the various possibilities:

Can I Semi-Retire

A Management Rights business in a Permanent complex presents and excellent opportunity for a semi-retired person or couple to move from full-time employment into a business with (generally) no specified hours of work.  The workload will vary depending on the type of complex: townhouses and villas may require several hours to maintain gardens, where a unit complex will require significantly less caretaking time.  Some complexes offer luxurious living for the manager and Body Corporate remuneration to match.

Looking for a change of lifestyle?

Holiday complexes usually require the Manager to work specific hours.  Of course this means that you are available to assist guests with additional income generating services and to take new bookings.  Like Permanent complexes, you are required to fulfil the Body Corporate duties but you will also be operating the holiday letting business that generates significant additional income.  A large Permanent complex will also provide generous income relative to the size of the complex and the management requirements.

Help From Others

When a complex is of a substantial size, it is likely that the Manager pays contractors to perform some or all of the more time-consuming tasks.  This may include cleaning, yard work and even reception/office duties.

Partnerships

More and more people are seeing the advantages of entering into partnerships with others to purchase and operate Management Rights businesses.

The Positives

  • Larger complex with higher net profit.  The ability to buy a larger complex with a higher income, therefore increasing the return for all parties on their capital investment.

  • Better lifestyle.  Working in partnership allows for more time off and helps with the workload.

  • Economies of Scale.  Multiple talents and expertise allow allocation of tasks to appropriately skilled people and the costs associated with employing additional or skilled help are reduced.  The cost of acquiring and running all plant and equipment needed to operate the business is spread over a greater capital base.

  • Partnership Agreement.  A clearly defined, documented agreement between all parties ensures that duties and responsibilities are known and agreed upon.

The Negatives

  • Partnerships are like marriages.  Personality conflicts are the potential threat to a partnership.

You Must have a Partnership Agreement

There are many matters that should be provided for in the Partnership Agreement to minimise the prospect of disputes between the parties and to ensure that everyone receives their just entitlement from the operation of the business.  Items to consider are:

  • Partnership capital

  • Partnership income

  • Time spent by the parties in operating the business

  • Termination of the partnership

  • How major decisions will be made

  • Hiring and firing of staff

  • Use of the Manager’s unit

  • Mortgage of the unit

  • Daily operations and the delegation of duties

  • Financial management

 

THE MBA PARTNERSHIP ACCOUNTANTS

Management Rights Accountant

PAUL GAFFNEY | MANAGEMENT RIGHTS

The MBA Partnership is one of the most experienced firms of management rights accountants in Australia. Many of their clients are new to the management rights industry, and with over 30 years experience in management rights they have the expertise to help you set up correctly from the beginning. From due diligence, accounting, taxation and auditing Paul and his team can guide you through the entire process.

Phone: +61 7 5557 8700

LEVEL 3 "PIVOTAL POINT"' 50 MARINE PARADE SOUTHPORT QLD  4215

pgaffney@mbapartnership.com.au | managementrightsaustralia.net 


 

Management Rights & Motel Finance P/L

Mark Ryall

 Mark Ryall | MANAGEMENT RIGHTS

Management Rights and Motel Finance Pty Ltd is an industry leader in providing specialist finance needs to companies and individuals embarking on the purchase of a Management Rights business. Mark and his team is dedicated to helping you with all your management rights and motel finance needs! We work around the clock to make sure you receive the best deals.

Suite 4, Level 2 / 247 Bayview St Hollywell QLD 4216

Phone: 07 55641100 | 0419 640 215
Fax:     07 30140108

mark@mrmfinance.com.au | www.mrmfinance.com.au

Australian Credit Licence No: 378366


 

Management Rights Articles

  • SOME INTERESTING STRATA STATISTICS!

    We all are aware that Governments (both State and local) are pushing people into high-rise living. Population growth in the cities means that more and more high-rise developments are inevitable.

    I recently came across interesting statistics relating to strata, which was prepared by the City Futures Research Centre at the University of New South Wales.  

SMALL MYERS HUGHES LAWYERS

COL MYERS | MANAGEMENT RIGHTS

SMH Lawyers handles all aspects of a Management Rights transaction from establishing, purchasing and selling Management Rights to advising bodies corporate on strata related issues and disputes. Col Myers and his team of experts is constantly exposed to all aspects of the management rights industry which means they can proactively advise when and how to best handle management rights to work effectively for individual scenarios.

Phone: +61 7 5552 6604 | Mobile: +61 417 620 516

Level 2, 17 Welch St Southport Qld, 4215

info@smh.net.au | www.smh.net.au  


 

Management Rights Brokers

 

 

 

 

 

Narelle Filmer | Linda & Wayne Stoll

Think Management Rights’ is a division of the nationally recognised First National Real Estate franchise. This team of specialist brokers operate throughout the state of Queensland. With over 15 years as owners, managers and sales agents in Management Rights industry, this team has a great deal of knowledge and experience to bring to the MRA seminars.

Wayne and Linda Stoll | Listings: Sunshine Coast / Gold Coast Region
Phone: 0452 181 505
wayne@thinkmanagementrights.com.au | linda@thinkmanagementrights.com.au 

Narelle Filmer | Listings: Gold Coast / Brisbane Region
Phone: 0459 229 744
Email: narelle@thinkmanagementrihgts.com.au  

www.thinkmanagementrights.com.au 


 

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