MRAgents Management Rights Agents

Assisting People Buy and Sell Management Rights Businesses

Preparation of Management Rights Buyers

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As Management Rights Agents we are often the first contact your buyer has with the industry.

So it is really important the buyer is financially ready and has spoken to a Management Rights banker/broker so they understand the limits of their purchase.

Ensure they understand the caretaking and letting agreements for the Management Rights they are purchasing. The buyer needs to understand that these contracts are the basis by which they undertake their daily duties and receive remuneration (Body Corporate salary).

As the outgoing manager, you have a responsibility to provide as much training as you can and encourage the buyer (incoming manager) to undertake as much training as possible. Including providing any information you have about the body corporate interview. The management rights agent and management rights solicitor will also assist in this area but it needs to be made clear to the buyer they need to understand their role when they take over the business any areas of concern the body corporate may have regarding the complex. The more prepared the buyer is then obviously the better the Body Corporate interview will go and hence approval so you can move on to your next adventure (no approval and the seller will need the agent to find another buyer).

 

Management Rights Managers are More effective

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If you have an empty unit/apartment/townhouse/villa then should you use the on-site manager or an outside agent? A recent article from the onsite manager shows that Management Rights Managers are more effective than other property managers renting units by around 20%.

This is useful to all owners as well as onsite managers to show prospective owners that you are more effective than other property managers.

 

https://theonsitemanager.com.au/news/how-do-onsite-managers-measure-up/

Office of Fair Trading issues a fair warning

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How to avoid being hit with a $26,000 ‘lazy tax’ over an AFAA trust account
It’s simple really. Lodge your audit reports on time.

Late lodgement of trust account audit reports under the Agents Financial Administration Act 2014 is a big issue here at the OFT. In 2017-18 alone, 438 licensees failed to lodge their trust accounts on time. Of those, 256 were issued with formal warnings and 182 were fined. And with fines of up to $26,110, it’s no small matter.

Your audit report must be lodged with the OFT within four months following your audit period. Many auditors will submit the final audit report to the OFT on your behalf as part of their service, however, it’s important to remember that legally it remains your responsibility to ensure the report is submitted on time.

Aside from a possible fine, if your trust account audit report is not lodged on time, you can be disqualified from holding a licence and may be prevented from renewing a licence, which could wind up costing you a lot more.

If you think you may have trouble meeting your audit deadline, you can ask us for an extension before your audit is due. You must make your request in writing, setting out the reason you are seeking the extension. Please be aware that extension requests submitted after the due date will generally not be considered. Another common issue we see is a failure to reconcile trust account cash books on time.
The Agents Financial Administration Regulation 2014 states that you must reconcile your trust account cash book within five business days after the end of each month.
This entails reconciling:
• the trust account cash book balance at the end of the month with the trust account ledger balances at the end of the month
• the trust account cash book balance at the end of the month with the financial institution’s trust account statement balance at the end of the month.
You must keep your reconciliations on file and be able to produce them for inspectors upon request.
And finally, if you identify a problem with your trust account, it is imperative you discuss it with your auditor and, where necessary, advise us of the issue. Covering up any discrepancies is never a good idea, even if they are caused by a rogue staff member or an oversight.
For more information on audit requirements, to access OFT forms, or to download Trust accounts – a guide for property agents, motor dealers, debt collectors and their auditors, visit www.qld.gov.au/fairtrading or call 13 QGOV (13 74 68).
Alternatively, you can order a hard copy of the trust account guide by emailing OFT.Comms@justice.qld.gov.au.

Scams regarding your internet connection

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Scams regarding your internet connection while not relating to MAnagement Rights or MRAgents it can seriously affect your internet connection.

I thought it timely to report on this phone call I have received (on and off over the last 5 or 6 years, or perhaps untimely).

I am sure some of you will have received a phone call which goes something like this “Sir I am from the Telstra faults department and I am ringing to tell you your computer has been hacked ……etc can you please type in the run box “CMD” now that you have the box up type in “Eventvwr”. This is the second clue that all might not be well and suggest can now you can look up using any search engine (Google). The first clue could well be the accent of the caller (from an overseas call centre).

To your surprise, there in the list of search results is the word “scam” etc. If you follow the link here you will get the idea of why you should hang up. So not about management rights agents this time but a helpful hint to avoid trouble.

I hope this is helpful.
If I can offer you any assistance with you Management Rights Sales or Business please contact me on 0412 707173 or email david@mragents.com.au.

Pre Management Rights Sale Valuation

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Pre Management Rights Sale Valuation. Why Is it Important?
Having your Management Rights home and business professionally valued is an important step if you are considering placing your business up for sale.

The Managers Home Value determine the fair price of for your property as part of the Management Rights Sale. For those of considering refinancing, banks usually require a professional property valuation in order to assess a monetary valuation of the property/business for purposes of their loan risk.

How can a Valuation help the sale of a property/business?

Pricing the Management Rights correctly has an impact on selling. It can affect the overall price achieve for the business.
Low price and buyers assume there’s something wrong and you are trying to dump it. Overpricing could cut out your target group, spend longer on the market and end up selling your Management Rights Business for significantly less than it is worth.

Ensuring the right price when listing makes it more likely to attract the right buyers. Pricing over market value hoping to find someone foolish enough to pay the higher price can mean that many buyers will not inspect as they won’t see it as an option. Depending on the location and market, buyers may be looking for businesses only within a price range.
If you choose to mark up the business from $950,000 to $1,050,000, for example, could mean buyers looking for Management Rights under $1,000,000 will not see the business at all, even if you were happy to accept $950,000.

The right price means more confident buyers

The difficulty of going to contract overpriced (home/Business) can cost you time as the bank will value it and if you may lose the buyer as the may not be prepared to negotiate. If they do negotiate you can also lose trust with the buyer, who may then want more off than they otherwise may have accepted.
It may delay your fishing trip by more than 90 days if you have to restart the sale process.
MRAgents Pre Management rights Sale Valuation

If you have a valuation to back up your price the buyer is much more confident in any offers which will be forthcoming.

Pay attention to the Pre Management Rights Sale Valuation

Ultimately, you will be better off listening to the advice of a professional and getting the right price for your Business the first time around. If you price too high and have no bites, you could be forced to go lower on your price and may end up selling for much less than you expected.