What are Management Rights?
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
- caretaking/managing of the common property
- letting rights
The Unit Contract and the Business Contract must be completes must be completed Contemporaneously
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 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 with in 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.
Click here or on the picture for a short video on what Management rights are.