Are you considering buying management rights
but want to understand exactly what you are
getting for your money? Are you aware that
there are many different types of management rights?
I’m John Gallagher from Argon Law and I would like to help you better understand the business
of management rights. Management rights is the business of on-site caretaking and letting within a
body corporate. When you purchase management rights this most commonly includes:
Ownership of a lot in the community title
scheme
A contract for caretaking of common property;
and
An authorisation to let lots in the scheme.
There are many different types of management
rights, including:
Holiday letting – which involves short term
letting, similar to operating a resort or
hotel. Holiday letting often produces a greater
return on investment, however, it is a more
complex business to operate.
Residential or permanent letting involves
finding tenants, collecting the rent, looking
after the property and maintaining a good
relationship with the lot owners.
You can also buy management rights ‘off
the plan’ which means you are buying the
management rights from the developer of the
project and will be the first manager when
the building opens after construction is complete.
If you would like more information about management
rights, please watch the other videos in this
series, visit our website, or give us a call.
