Selecting a Management Rights business should not be a quick decision. It is important to research and discuss your circumstances with people who know and understand the industry.


Research

In addition to the information provided here in the Management Rights Australia web site, you can visit other sites, attend seminars, speak with Managers who are currently operating or have previously owned Management Rights and also speak with Management Rights agents.

We invite you to register for one of our Information Only seminars or alternatively our Useful Links section will provide additional resources.

Financier

Once you have decided that Management Rights is for you an early discussion with a specialist Management Rights lender is suggested in order to establish your purchasing power.  Most lending institutions are very comfortable with Management Rights businesses but, again, it is important to liaise with a lender with current working knowledge of the industry.  Important points to consider:

  1. The value of your home, superannuation, additional investments, savings, shares and other assets

  2. Whether or not these assets will need to be sold in order to raise the necessary capital contribution for your purchase

Lenders will look very closely at your ability to service the loan regardless of your assets.  This financial decision needs to be made very early in your investigations with the bank in order for you to determine your borrowing power.

Specialist Management Rights Agents

The next step is to search the net and enlist the assistance of specialist Agents to assist you in finding a complex that will suit your individual requirements.  Management Rights is a combination of commercial and residential real estate and therefore your interests are best served by seeking out an agency that understands the industry.

Inspection of Properties

Most people start their research by viewing property listings on the web and then, having researched the possibilities, arrange to inspect properties of interest with their Agent. Your Agent will arrange suitable inspection times with the property vendors and will also provide you with more detailed information about your selected properties including current financial information.

During these inspections you will be shown around the complex, including the common property and the Manager’s residence.  It is not always possible to inspect the rental units if they are tenanted.

After looking at several complexes, you will then draw up a short list for second inspections.  If you have specific questions that you want answered, let your Agent know so that the Vendor is prepared.

Specialist Accountant

An early appointment, prior to signing a contract, should be with an Accountant with current experience in the Management Rights industry.  Their specialist knowledge will be invaluable to you prior to purchase and for the ongoing management of the business.

It is very important to appoint a recognised accountant whose reports will be accepted by your financier. Your accountant will normally attend to the following:

  • Initial cash flows and budgets

  • Advise on the most suitable business structure

  • Prepare a verification report which will verify the net profit as stated by the seller

  • Review Trust Account records

  • Advise of any income streams or expense which are not normal in the management rights business
  • Check all letting appointment agreements – PAMD 20(a) agreements

DFK Crosbie is a well recognised and respected firm in the industry as practicing accountants and CAs with over fifty years experience. Paul Gaffney, Geoff Stephens and Deslea Firth carry out work in Management Rights industry on a daily basis.

DFK Crosbie offers the following services that will assist you before, during and after entering a Management Rights business:

  • Accounting Matters which includes Before Signing, Verification and Profitability, Bookkeeping – General Accounting and Trust Accounting, Taxation Matters and GST Implications

  • The Accountant’s Perspective, a step-by-step guide to assist you through the purchasing process, your business operation and the eventual sale of your business

Please contact Paul Gaffney at DFK Crosbie (07) 5591 4444 or visit our website at www.dfkcrosbie.com.au.

Specialist Lawyer

Your lawyer is an integral part of the Management Rights transaction.  He / she will be able to correctly structure the business initially to ensure success in your venture.  Your lawyer will liaise with everyone including your Agent, your Accountant, the Vendor’s lawyer and most importantly You!

Your lawyer will step you through the whole process ensuring that your interests are protected at all times.

Col Myers of SMH Lawyers is a specialist with many years Management Rights experience.  SMH’s advice and due diligence is a comprehensive process and includes the following:

  1. Structure: Looking at how the business is to be structured initially is paramount to avoid paying unnecessary tax and enhancing growth of the business.

  2. Contract: Liaising between the Financier, Accountant and Agent to ensure the contract includes specific clauses to protect your interests.

  3. Due Diligence: This is the most important task that your Lawyer will undertake.  By conducting a comprehensive legal due diligence review on the business, they will make sure there are no legal issues with the Caretaking and Letting Agreements.  A full search of the Body Corporate records will be conducted on your behalf to ensure that there are no major Body Corporate issues pending or any issues with the contract or the current Manager.  The conveyancing of the Manager’s unit will be included as part of this process.

  4. The Body Corporate: The settlement of the Management Rights is always subject to the Body Corporate’s approval.  This is usually a committee meeting held in the offices of the Body Corporate Manager.  Your Lawyer should step you through the meeting process and the potential questions which may be asked.  They should also liaise with the Body Corporate’s Lawyer in relation to any changes to the Deed of Assignment.

  5. Settlement: Your lawyer should make the settlement as smooth as possible whilst you are learning the business on-site.  Usually there is a two week training window (one week prior and one week after settlement).  Your lawyer will attend to settlement figures, signing of documents and will attend the settlement meeting on your behalf.  Your Lawyer is the one to ensure everything happens as planned and should keep you kept up to date at all times.

Your lawyer should be able to communicate with you in a personal easy to understand manner and most importantly, deliver results.  If your current lawyer does not specialise in Management Rights, then they should not be used for this process.  Management Rights is a highly specialised field and the wrong advice can have disastrous financial consequences.

For more information on legal matters contact  Col Myers at SMH-Lawyers on +61 7 5552 6666 or visit our web site at www.smh.net.au

At some stage in the purchasing process you will need to complete the Resident Letting Agent’s Licence training course.  Training is available in either a classroom situation or by distance or internet learning.  Please refer to our Training and Licensing resource for more detailed information and links to certified Training Providers.

Training and Licence Application

At some stage in the purchasing process you will need to complete the Resident Letting Agent’s Licence training course.  Training is available in either a classroom situation or by distance or internet learning.  Please refer to our Training and Licensing resource for more detailed information and links to certified Training Providers.

 

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

  • SHORTCUTTING THE ASSIGNMENT PROCESS

    Different States have different requirements when it comes to obtaining Body Corporate consent to the assignment of Caretaking and Letting Agreements.

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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