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.

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!

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