MRAgents Management Rights Agents

Assisting People Buy and Sell Management Rights Businesses

Preparing your Management Rights Home/Business for sale

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Preparing your Management Rights Home/Business for sale
“Best impressions are first impressions so make the most of it.”

Some tips to get a quick sale at the best possible price

Preparing your Management Rights Home/Business for sale
Note Rusted gutter and Wasp nests

Exterior         

Check the paintwork, spouting, brickwork, and fascia boards.
They may need a brush down or a lick of paint.
Maximize Space and minimize junk by cleaning out the garage and storage areas.
Tidy up the garden by removing weeds and dead leaves, trim plants, add mulch and consider adding a splash of colourful plants.
Remove kids’ toys from the garden and roll up the garden hose.
Repair any broken or cracked windows, damaged fence panels, and gate hinges.
Clean BBQ, remove junk mail from the letterbox and fly screens in good repair. Ensure all doors open, slide freely and lock and unlock easily.

Interior

Preparing your Management Rights Home/Business for sale
Fix these

Perhaps the most important is the entranceway. Ensure that it is clean and uncluttered.
Make sure the doorbell works, repair chipped or cracked plaster. Clean the windows inside and out.
All floor coverings freshly cleaned – Professional grout/tile cleaners and carpet steam cleaners make a big difference.
Ensure curtains/drapes are clean and open. Beds made, cupboards cleaned. Reorganize cluttered bookcases even store them in boxes elsewhere.
Hide any unsightly electrical wiring to stereo and TV. Bathrooms/kitchen/toilets and all taps should be in good working order (no drips or leaks).
All surfaces cleaned and polished.
Remove any mold from the shower recess and soap stains from the shower floor. Clean all mirrors, glass screens and consider replacing the shower curtain.
Put clean towels, soap, and air fresheners in the bathroom and toilet. (Try to make these areas like a five-star hotel).
Put away small appliances in the kitchen and bathroom (Hairdryers, toasters, etc) to reduce general clutter, fridge magnets, and cookbooks.
Empty rubbish bins, neutralise unpleasant odours.
CLEAN YOUR CUPBOARDS: rearrange the inside of your cupboards. Buyers are often interested to know how you use the cupboard space and will look inside.
If everything is tidy, they will trust that you look after the house.
You also want to communicate that the house has enough storage space that they can live comfortably – so make sure that your cupboards are not filled to the brim.

Renovate Carefully
Home improvements can be very expensive. Focus on value-for-money improvements which will generate a higher selling price. While major renovations may make your home more saleable, you may not recover the costs when you sell. Remember you want to maximise your profit!
Cosmetic improvements such as touching up paintwork or planting flowers in your front yard are usually good value for money. When choosing paint with colours, try to be objective. You may love your bright orange kitchen but there’s a fair chance that most buyers won’t. Consider painting your walls in neutral colours in a matte finish.
Tips for Inspections

Ideally, your Home and Office should be presented as a luxury hotel suite or a new display home;
there are a few tricks that can make a big difference apart from the general appearance.

Vases of flowers or bowls of fruit help.
Turn on the air conditioning in the summer.
Glossy lifestyle magazines on the coffee table indicate your commitment to quality.
Have some light music playing in the background.
Jewelry, valuables, and mementos should be locked away or removed.
Remove or minimize the number of personal photos (You want potential buyers to visualize themselves in your home, not who the current owners are).
Remove pets and all evidence of pets when displaying your home.
Impress the Senses
For many, buying a home is an emotional choice.
For that reason, a home that feels comfortable is likely to sell for more.
Consider:
Putting out vases of fresh flowers,
Heating the house in winter, Air-condition Summer, or Leaving several windows open in the summer,
Ensuring that your house has a pleasant aroma (incense)
Leaving lights on in dark areas,

Preparing your Management Rights Home/Business for sale
Improve Ambience

Opening curtains and blinds,
However much you love your dog, potential owners may not.
Keep pets outside or away from your home during inspections.

When you feel that your property is ready, walk around your home and ask yourself if it feels welcoming.
Does your house look like nobody lives there?
If so, you’re ready!

Importance of Management Rights Email address

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Importance of Management Rights Email addresses

1. Internet Service Provider (ISP) Email addresses

myname@myisp.com.au (eg. david.manson@myisp.com.au) Where MyISP’s such as Bigpond, TPG, Dodo, iprimus etc., reflects a personal email and does not relate to the business. Also when you sell the business will have difficulty passing this address to the buyer of your Management Rights (as it is now common practice that email address is now often sold as part of the contract) and it may also means you may have to change the email address with your provider. Then you will have to start again with a different email for your friends to contact.
It is simply not professional and may create some uncertainty in the buyers mind, that you will still be receiving emails from owners and have potential to interfere with the new Management Rights owners business.

2. Complex name and ISP Email address

Why the email address mycomplex@myisp.com.au (EG somerset@myisp.com.au, Where MyISP’s such as Bigpond, TPG, Dodo, Iprimus etc) reflects the business to some it extent. You may have difficulty passing this address to the buyer of your Management Rights (as it is now common practice that email address is now often sold as part of the contract) for several reasons
(a) reluctance on behalf the ISP and
(b) the new owner uses a different ISP

3. Complex Name and free email providers

Now this is probably the cheapest option mycomplex@freeprovider.com (eg somerset@freeprovider.com where the free providers such as Hotmail, Yahoo, Gmail, Outlook, Mail and GMX are just a few) this can be easily changed to the new owner at conclusion of the sale along with all the contact. Though some people maybe suspicious of this type of address (as they often used by spammers) they are better than any of the first 2 options

4. Domain names email address

This final option for a Management Rights Email address eg manager@mycomplex.com.au, or david.manson@mydomain.com.au adds professionalism to your Management Rights Business. The process is a little more complicated and involves registering a Domain Name and if you have decided on a company which is different to the complex name you may wish to consider a more generic company name like “Elite Property Management”, “Davids Property Management” checking you can get this Domain Name while also choosing the company names availability with ASIC.

Using company names in a Management Rights Email can add to the difficulties during a sale as you generally do not sell your company to the new purchaser and often like to retain the name, Especially if you are purchasing another Management Rights.
The cost varies on where you purchase you Domain Name and the period you sign up for but starting out fees are usually around $30-$100 Year and the cost of getting an email address with this domain name will be between $40-130/annum.
Adding a webpage (Web hosting) to this will add a similar amount depending on how many bells and whistles you wish to have.

 

SUMMARY

  • Using a Domain names give more credibility and reliability because the domain creates a feel that the client is in direct contact to your business.
  • Having a domain will reduce the chances of your email being seeing as a spam.
  • Your vendors are always interested to hear from their property manager.
  • The personal email might be seen as a spam, as the client might not know your personal email
  • Domain names similar to the complex make it is easier for your owners to remember the email later on
  • You can create many emails for different people using the same domain. Making it consistent and easier for the clients to contact everyone in the company
  • Also on sale of your business this email can be easily handed over to the new purchaser

 

Understanding Management Rights Language/Terms

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Management Rights Understanding Language/Terms

When looking at Management Rights you will need to understand most of the commonly used terms by the Management Rights industry.

Here is a list of some common phrases you may encounter and a brief reference.

Salary or Remuneration

Body Corporate Salary/Remuneration

 Income the manager receives for completing the duties described under the caretaking agreement with the body corporate (Caretaking Contact)
Net Profit                        Is the before tax business income, adjusted for sale purpose, which has allowances for industry add backs.
Aagreements Caretaking and Letting Agreements you engage with the Body Corporate.
Caretakers Duties           Jobs you are required to do as part of your responsibility as the Caretaker, which is outlined in the Caretaking Agreement.
On Title                           If the office is On Title means you own the freehold to the office, as opposed to an exclusive Use area.
Letter of Offer / Offer & Acceptance Used to negotiate the sale price plus terms and conditions to appear in the sale contract.
Contracts Drafted by the Agent/Solicitor to industry standard, usually approved by the buyers and sellers solicitors prior to signing.
Verification (Sometimes called) Finance Due Diligence Financial Verification of the business figures is done only after we have a signed contract. They are done by the buyer’s specialist management rights accountant.
Due Diligence                 Legal Due Diligence of the Caretaking & Letting agreements and body corporate records is done by the buyer’s specialist management rights solicitor.
Body Corporate Consists of a group of owners from the complex but managed by a separate company known as the Body Corporate Managers
Committee Approval      

 

 The last step of a buyer’s contract is when the incoming manager is approved by the committee at the meeting. Also refers to committee voting on any issue raised by members including the manager, most commonly done at a meeting.
Unconditional Contract  

 

 The stage during the contract period when the key conditions of Financial Verification, Legal Due Diligence, and Finance Approval have been satisfied.

 

Why Management Rights Experts?

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The purchase of Management Rights can be a complex process which requires a significant investment of your time and money. It is therefore vital that you engage relevant industry experts to guide you through the stages and ensure a smooth purchase process.
Their experience will assist in identifying any real or potential issues. If you’re contemplating using your current team (solicitor, accountant or lender), then it is advisable to ascertain that they possess and demonstrate the appropriate expertise in this area, that is they are Management Rights Experts.
What your key advisers will do for you:-

Your Accountant Management Rights Experts.

Responsible for doing the following:

Checking best structure for your set of tax circumstances (Solicitor is also involved as legal issues need to be considered).
Ensuring that the income/profit stated by the seller is correct and verifies this for the bank. Again you should check with the lender/bank to ensure that they recognise them and won’t need any further verification done.
After the purchase they can be involved in compulsory Trust accounting reports for the OFT

Your solicitor Management Rights Experts.

Your solicitor may provide advice on matters including:
your borrowing structure
the names in which to purchase assets
setting up company and trust structures
The most important task they undertake is a ‘Legal Due Diligence’ as part of the purchase process. This includes reviewing:

the contracts
the Management Rights agreements and any extensions, assignments and variations
the By-Laws and Community Management Statement
the Body Corporate records.

The Due Diligence report will be provided to both you and your lender. Often if the lender does not not recognise the lawyer they may undertake their own legal due diligence at you expense (that’s right you will pay for 2 “Due Diligence”. If any issues are identified during this
process, your solicitor will discuss them with you and provide guidance on how to manage them.
The role of your solicitor doesn’t end at settlement. Once you own a management rights business, you will probably need their assistance for things like:
exercising an option
seeking a variation in your agreements
seeking an extension in the term of the argument
dealing with complaints or issues

Your lender or finance broker Management Rights Experts.

Not all banks have managers who specialise in purchasing management rights. So look for a finance broker or a bank who has built a reputation in this specialist area, and make sure they have a real understanding of the industry, current issues and values.
If you’re new to Management Rights, you should look for a finance broker or lender who can put you in contact with other key industry advisers. They should also be able to give you an indication of how much you can borrow, provide you with a funding scenario for any options you’re considering, and introduce you to other financial specialists you may need to help run your business.

5 Essential Tips Buying Management Rights

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Looking to buy a Management Rights?

Here are five essential tips for making the process as smooth as possible.

1. Get your finances in order.

Start by getting a full picture of your credit. Obtain copies of your credit report. Make sure the facts are correct, and fix any problems you find. Next, find a suitable (Management Rights) lender/finance broker and get pre-approved for a loan. This will put you in a better position to make a serious offer when you do find the right house. You need to see a specialist finance broker or talk to a bank that does Management Rights Loans (ask me about which banks are the best and the people to contact with the bank)

2. Find a Management Rights you can afford.

As with engagement rings, there’s a general rule of thumb when it comes to buying a Management Rights Business: Borrowing should be limited to between 50-65%. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford. Don’t forget, too, that there are lots of considerations beyond the price, including stamp duty, Solicitors, accounting and finance due diligence costs,

3. Hire a Management Rights professional.

While the Internet gives buyers unprecedented access to Management Rights listings and resources, many aspects of the buying process require a level of expertise you can’t pick up from surfing the web. That’s why you’re better off using a professional agent than going it alone. If possible, recruit an exclusive buyer agent, who will have your interests at heart and can help you with strategies during the bidding process, or find an agent you can work with and trust

4. Do your homework.

Before making a bid, do some research to determine the state of the market at large. Is it more favorable for sellers or buyers? Next, look at other listings/sales trends of similar businesses in the area or neighborhood. Look at prices for the last few months. Come up with an asking price that’s competitive, but also realistic. Starting too low can antagonise the seller.

5 Think long term.

Obviously, you shouldn’t buy unless you’re sure you’ll be staying put for at least a few years. Beyond that, you should buy in a neighborhood with good schools. Whether you have children or not, this will have an impact on your new businesses resale value down the line. When it comes to the Managers Unit/House/Apartment itself, you should hire your own house inspector, who can point out potential problems that could require costly repairs in the future.

If you wish to know about buying a Management Rights I can contacted on mobile 0412 707173

What are Management Rights?

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What are Management Rights? (Click on the link to watch a video)

the business of managing a strata (Hi-Rise, Townhouses, 3-storey walk-up)  complex with the purchase of a “managers” unit/residence and  2 business contracts

  1. caretaking/managing of the common property
  2. letting rights

The Unit Contract and the Business Contract must be completed Contemporaneously (at the same time).

As the buyer (Resident Managers) you are agreeing to do the caretaking of the common property (sweeping, weeding gardens, mowing, managing the swimming pool, etc.) and you are paid a Contractual Remuneration by the Body Corporate (usually monthly in arrears).

The Letting Agreement allows the buyer to let the units/townhouses within the complex and you must obtain a “Resident Letting Agent” License to allow you to manage rentals within the scheme. Some buyers also obtain their Full Real Estate License or a Real Estate Sales License to enable them to sell units within their complex.

Using Accountant, Lawyer, Financier, Banker with Management Rights Experience (Management Rights Professional)

is essential as the Management Rights industry is very specialised. We stress that it is of the utmost importance you use Management Rights experienced professionals to ensure you get the best advice prior to and during the contractual stages.  Choosing to use professionals who are not recognised in the industry can lead to increased costs, more complications or even a loss of the contract. You must check that your bank or finance lender recognises them, otherwise, you may be up for extra to repeat the legal, and the accounting due indigence by professionals the bank recognise.

Different Management Rights?

Short-Term or Holiday Letting, Short Term or Corporate Letting,  Long Term Permanent Letting, Student letting and mixes of these.

What are Management Rights? For Video Click here